The commercial real estate industry consistently provides amazing opportunities for business owners and investors. However, if you aren’t up to date on your commercial real estate terminology, you could be missing out on some important details. Rakow Group can help you make sense of any commercial real estate deal and help you find the absolute best prices for a commercial property for sale. Contact us today to experience why we are an industry leader.
Below, we will shed some light on commercial real estate terminology you should know. Hopefully, these terms can help you better understand the commercial real estate industry and take steps towards making more profit.
Option to Buy
If you are a tenant that is looking for commercial property for rent, you might notice that the contract states the “Option to Buy”. This is a great option if you do plan to invest in commercial real estate soon. If you see the “Option to Buy” in the contract and are serious about pursuing it, you should try to have the owner include specific terms and the price you can expect to pay for the property in the contract.
Sometimes, if you are renting commercial real estate, you might be offered rent concessions. These are typically allowances that provide tenants discounts on their rent for a certain period of time. It usually happens if the property is being renovated or if the tenants need to avoid extra expenses when they are moving into the commercial property for rent. It always helps to have a great commercial real estate broker look over anything like rent concessions before you sign a lease.
Usable Square Footage
When you are evaluating industrial space for rent or commercial property for sale, you should review the total usable square footage before making any decisions. This term refers to the total amount of space that is being leased. It’s a great idea to have a number in mind for the total square footage your business needs before searching for commercial property for rent. That way, you can narrow things down quickly and stay focused on only the properties that will meet your needs.
These three terms are important for anyone to know if they are interested in commercial real estate. Remember that Rakow Group can help you out with any of your commercial real estate needs and negotiate the best possible deals for you and your business.