The Lehigh Valley commercial real estate market is incredibly competitive. There aren’t many investment properties available right now, and even fewer properties that are available are priced below the million dollar asset class.
And even if there are properties available for purchase or rent, how do you know they’re being offered at a fair price? The variables affecting a purchasing decision can change quickly, such as interest rates and comparable transactions in the market, which can affect market valuation.
Under these conditions, finding a property by yourself can be a real challenge. You might end up searching for a long time and find nothing at all. And if you do find a property, the deal might hit a snag that both parties have to work constructively to resolve.
A good commercial agent can assist in finding properties that are both on and off the market and help navigate the real estate transaction through their knowledge, experience and relationships.
What is a Commercial Agent?
A commercial real estate agent is a licensed professional who enters into the business relationship with a client to assist them and advise them in a real estate transaction. They primarily work with clients looking for properties that are not single family dwelling units, such as investment properties, or places for business establishments.
Here’s what it’s like to work with one.
4 Benefits of Working With a Agent
Commercial agents have working relationships with listing agents. This benefits businesses in a number of ways.
Finding Unlisted Properties
Often, an agent can use their connections and experience to assist in finding properties that aren’t listed for sale. For example, they may contact a former client or property owner to inquire if they would be willing or interested in selling an asset, since the new client expressed an interest in owning a similar asset.
Due diligence is one of the most important steps in buying a commercial property. It’s also among the most difficult to conduct yourself.
The due diligence process includes a number of steps:
- Assessing market conditions
- Verifying property income and expenses with historical info
- Evaluating comparable property values
- Assisting in strategy to resolve disputes during the contract period
As a result, many commercial buyers, who don’t have the time, resources or experience to handle it themselves, choose to enlist the help of an agent to make sure they are getting all of the relevant information needed to make their purchasing decision.
A commercial agent can also help you identify costly repairs and capital investments up front to either leverage them during negotiations or help you budget for them in advance.
Help With Negotiations
During the due diligence process, the agent may uncover information that conflicts with the advertised cash flow or other factors that affect the value of the asset. At this point, the agent can point to sections of the buyer’s agreement that can lead to a more favorable outcome.
Keeping Deals Alive
A deal isn’t done until settlement occurs.
A commercial real estate deal is always at risk of falling apart. There are a number reasons a contract can fall apart:
- Appraisal issues
- Title issues
- City inspections
- Contract disputes with the seller
- Condemnation or casualty loss
With so much uncertainty standing between you and the commercial property you want, it helps to have someone working with you to keep the deal alive. A commercial agent does this by advising on strategy and being a mediator between buyer and seller to resolve the issue and come to an agreement.
Beyond ensuring you get the property you want, this protects you from the financial impact of losing a non-refundable deposit.
Working With a Lehigh Valley Agent
Every commercial real estate market is unique. Working with someone experienced with the market and trends in the region where you’re buying is a huge asset.
In the same way that agents know other agents, Lehigh Valley agents will have stronger relationships with agents in the valley than agents from other markets will. They’ll also be more likely to know property owners than someone from a different region.
An added benefit is that a LV agent will know ahead of time about projects coming to the area that could make property in the area more or less valuable. For example, ongoing residential and commercial development in downtown Easton has transformed the market for commercial real estate in the area over the last ten years.
If you’re new to investing in the Lehigh Valley, you might not know someone you can trust to manage things on time and on budget. A local agent will be able to connect you with title agencies and inspection groups that you can rely on to keep your commercial deal on track.
A commercial agent can help you find the property that meets your budget and investment expectations. If you’re looking at real estate in the Lehigh Valley, finding the right agent can be the difference between a successful deal and a costly one.
Need help buying, selling or leasing commercial property? We can help. Get in touch today and tell us about your needs.