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Commercial Real Estate Buying Process
Purchasing commercial real estate may not be the right solution for every company, however if your business has stable staffing, can predict future office space needs, and determines that it will benefit you financially, then you might be a good candidate for ownership.
Austin Tenant Advisors uses a thorough approach to ensure that no detail is overlooked, and your critical dates and deadlines are met. A summary of our process includes the following:
Evaluate Your Commercial Real Estate Needs – We help you define your business’ space needs, financial priorities, and location preferences to help streamline and simplify the process. We help you:
- Define a convenient and accessible location for your business;
- Determine current and future space and layout needs;
- Estimate the maximum down payment and monthly payment you can afford
Provide You a List of Options - We research and compare available properties amenity and selling prices, as well as research lease rates of comparable properties. We work with you and your financial professional to give you a preliminary estimate of your potential ownership payments and conduct a lease vs. purchase analysis to determine which option is right for you.
Choose a Support Team – Now is a good time to start consulting with your mortgage broker, attorney, CPA or financial advisor, architect and/or space planner, and interior designer. If you don’t have a current relationship with one of the above, Kucera can help connect you.
Tour and Evaluate Properties – We tour the most desirable properties with you to evaluate the physical, operational, location and preliminary economic attributes against your criteria. Given the results of the property tour, decisions can now be made on how favorably each building compares to your ideal criteria and a final list of 2-3 alternatives can be chosen.
Analysis of Alternatives – We will conduct a full comparative financial analysis as well as weigh the intangibles and advantages of each property. This arms you with clear comparisons of the proposed terms and costs, and enables us to tender creative offers.
Negotiation and Final Selection – Together we will identify and select the best property based on the objective and subjective criteria we set and prepare and present a sales contract or letter of intent. Counter offers may go back and forth until we feel the sellers have proposed their best, competitive offer, which at that time the contract can be executed and earnest money can be given to the title company handling the transaction.
Due Diligence Period – We work closely with you to ensure that you have time to conduct physical and environmental inspections of the property, verification of zoning or applications for approval of use, and negotiate repairs as needed. This is also a good time to request pricing estimates from contractors and other service providers for potential space improvements, as well as submit the contract and relevant financial information to your lender.
Settlement - If inspections meet your approval we may proceed with the sale, setting a closing date and time, review closing statements, finalizing the mortgage application, and purchase title insurance.
Construction & Move-in Coordination – We will work with the contractor, and architect to insure that the space is built out on time, and according to the specifications you set. Our strategic alliance with related services providers (ie: internet, phone, movers) ensures you are consulted in every detail of the move-in process. |
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