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The Commercial Broker – Do You Have One?

16 Mar

When looking to buy or sell a home, one of the first things most people do is engage their own Real Estate Agent (or “Broker” depending on the vernacular of your location).

Many medium to large size corporations will have entire groups dedicated to the acquisition, and management of their retail locations.

And the small business owner? In many cases the acquisition of a commercial space looks something like this:

  • Get the business plan, and financing squared away
  • Go through some level of due diligence to determine the right location & type of property
  • Do some on-line searches and burn some shoe leather lining up the right property
  • Pick-up the phone and call on the properties identified

In this scenario this is the first point at which a Commercial Broker enters the picture, and it’s the broker that has been contracted by the property owner. Now don’t get me wrong, the professional Commercial Broker typically does a great job representing both sides of the transaction.

Here’s my point – when engaged as a member of your professional team, a Commercial Broker can bring their business acumen, and unique perspective much earlier in the process resulting in a better overall decision. The fact that you now have a professional member of your team who understands your business needs in depth, and will represent you and your needs in all negotiations doesn’t hurt either.

A Commercial Real Estate Broker on your team will lead to better decisions, and can ultimately improve your bottom line. It’s the most cost effective business consulting you will ever receive.

There are some very good tips on selecting a broker contained in this article.

If we can answer any questions, or be of service, please drop us a line at info@axiomre.com.

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Lease Option – The Time is NOW

12 Mar

Are we at or near the bottom of market prices on commercial property?

As a small business owner, if you’ve ever considered owning commercial property then the answer to this question is key to what’s next for you. But in this economy who has the down payment to take this kind of a step? Enter the Commercial Lease Option.

A Lease Option put simply is a commercial lease that includes an option to purchase the property at the end of term, for an additional fee. The term is negotiable, the seller will typically prefer a shorter term, say three years, but we have seen terms as long as five years. And here are the keys for you as the holder of the option:

  1. You can lock in a future purchase at today’s prices and,
  2. You gain control of property without direct ownership for the term of the Lease Option.

Not every seller will be open to the idea of a Lease Option, but in the current market environment there are many for whom this can provide an attractive solution. For the seller the Lease Option provides a stable tenant and a property buyer in one transaction. Additionally the seller receives the additional income of the purchase option payment for the term of the lease.

The Lease Option can be applied to almost any type of commercial purchase. If you simply want to own your own space then a small commercial building, or commercial condominium might be the right choice. If you are looking to generate additional income then a property with multiple tenants might be the way to go.

In any case a Lease Option is a great tool for taking that first step to building additional wealth in your business. As with any lease transaction, we always recommend you have your own commercial agent on your team. It costs you nothing as the leaser/buyer, and can make all the difference in what is inherently a complex transaction.

If we can ever answer any questions, or be of service to you please drop us a line at info@axiomre.com.

To Lease or Buy?

16 Jan

Is it better to buy than lease my office space? It’s a question I am often asked when leasing space.

The answer is that there is no one right answer as each business owner has different circumstances. However, by analyzing the business owners needs, tax bracket, need for cash,and other criteria, we have been able to create annual sizable savings and a retirement fund for many.

We have a service that Offers a free “lease vs. buy analysis” that I would be happy to extend to our readers.

Allen Olson
253-473-5351 office