What is the CCIM designation?
CCIM stands for Certified Commercial Investment Member. It’s a prestigious designation awarded to commercial real estate agents nationwide and around the world. Read more to learn how this designation benefits clients and brokers.
Buying Industrial Real Estate can be a rewarding investment for both users and investors, especially in strong markets like South Florida. During our long careers, our team has helped many buyers in the acquisition of industrial spaces. Buyers have a lot of questions at the beginning of the process and here are some frequently asked questions we’ve received over the years.
Do I need to wait to buy a warehouse?
No. This is a question we get the most. Start the process right away and work with your broker on the search. Buying a warehouse is a large investment for businesses or investors so it can be scary. However, waiting for the “right deal” to appear is not the right strategy. The market is very competitive, so it takes time to find the right property. Our team stays very active with our clients; always showings spaces and making offers. Constantly looking at options is the best way to get the right deal.
What's the process for buying a warehouse?
Buying Industrial Real estate follows a similar process as other forms of commercial real estate. Even residential real estate. Starts with the search with your broker, then locating the site, negotiations, and signing a contract. Once the building is under contract and the escrow deposit is done, the buyer will conduct their due diligence and obtain financing (if applicable). The times for these vary depending on how it was negotiated with the Seller. Some can be as short as a week for competitive deals. Others can be months or even a year for properties that require lots of inspections or zoning contingencies. (Check our video on Due Diligence Steps for Buyers)
Once all contingencies have been met, the money deposited in escrow becomes non-refundable. Buyer and Seller proceed to closing within a short period of time.
How can I compete with Cash buyers on the market?
Industrial Real Estate is very competitive. The best way for Buyers to stay competitive is to be flexible with Sellers. It can be in the form of paying a little more than a cash buyer. Extend, or shorten, closing, depending on the preference of the Seller. Also, consider letting the Seller stay in the property as needed to make a transition easier. Additionally, Buyers might consider releasing some money from escrow to Seller once due diligence is completed.
Is there still financing available?
Despite the crisis, there is plenty of financing sources available. For both users and investors. Additionally, interest rates remain at record lows. There are plans for small businesses where they can get up to 90% financing.
Can we look at off-market deals?
Yes! We highly encouraged that buyers work with their broker on also looking at off-market opportunities. There is a limited amount of inventory, so Buyers need to look beyond what’s available. Our team always work with our client to make off-market offers to properties that might fit the criteria.