When taking a commercial property to the market to either sell or lease, it is essential for the real estate agent to understand all the property details. Questioning the property owner is part of the process but should not be the only method of gathering the correct detail. Property owners will not always remember or disclose key elements of the property to the real estate agent. Local authorities and other instrumentalities are part of the property investigation.Here are some concepts and questions that can be put to the property owner and investigated prior to listing the property for sale or for lease.
How is the property currently used and is that supported and correctly detailed in the lease documentation? Review the lease document accordingly. Check out the permitted use and its relevance to the zoning of the property.
What is the current detail of the income for the property including rental, outgoings, rent reviews, and option periods? Check the tenancy schedule and the leases as part of that process.
What is the established expenditure history for the property and is it operating to budget today? This detail should also be cross referenced to the outgoings for the property. How do those outgoings compare to other property in the local area of a similar type?
What is the history of the site and the previous occupants? Has the property been involved in any orders or notices that had to be rectified, and was the remedy correctly and fully completed? As part of this process, it is wise to approach the local council and the building authority independently to see if current orders or notices are outstanding.
Are any hazardous chemicals or equipment used in the property at this time and are they controlled under particular rules, legislation, and regulations?
What are the relationships between the existing property and the neighboring properties? Ask about matters of adjoining boundary, rights of way, encumbrances, and easements. See if they are correctly displayed on the property title.
Understand how the current building complies with the existing building codes and the occupancy certificate that relates to the property. Any notices or orders should be satisfied prior to the marketing of the property for sale or for lease.
Check the matters of access to the property from all roadways. In the case of major highways, the access to the property can be limited due to regulations of entry and access at different times of day. The local council or the transport authority should have details to help you here.
Energy performance and supply of energy to the commercial property is becoming ever more environmentally critical. High inefficiencies can frustrate sale or lease of the property or premises. Energy efficiencies are questioned and required by tenants and purchasers of property. Local building authorities may have also imposed rules and regulations relating to the consumption and supply of energy; seek more detail and review the energy outgoings.
Interview the neighbours surrounding the commercial property to understand if any associated issues of conflicting property boundary, access, or usage exist.When inspecting commercial property, do so with a questioning mind and attention to detail. The findings of your inspection should be well documented for future reference and investigation.The owners of property may think that they know everything about the local precinct and the operation of their premises; this is not always the case and the astute real estate agent understands the necessity to fully and independently investigate the property prior to marketing. Mistakes can derail your marketing or future deal negotiation.