Although the commercial market seems dismal in certain areas of Metro Phoenix, the Scottsdale area seems to only have taken a ‘gentle’ hit. With investors flying into Phoenix from all over the world to look at commercial properties for investments, they tend to start their search in the upscale Scottsdale area where there is a very healthy mix of industrial, light industrial, office, office/warehouse and mixed use which tends to fit the palette of the many different types of investors.
The overall sense of urgency when buying a commercial property seems to be relatively high in Scottsdale; in fact, the mindset of buyers coming into Scottsdale is to find a great buy in a great location. The reality is that those great deals are snapped up sometimes before they hit the market or they are just simply gone, so the buyer’s expectations are not met.
Let’s face it, the mindset has to be realistic, especially in Scottsdale, which is a popular place with a tremendous amount of wealth. Is there availability? Yes. Is everything priced cheap? NO. Working with an experienced commercial broker is a necessity in this market.
Here are the top five things that you can do to make the process smoother for you when searching for commercial real estate:
1. Find an Experienced Commercial Broker That’s Connected
What I mean by “connected” is to interview commercial agents and ask them how they send updates to clients. Can they tweet or text you, maybe even send video downloads to your phone with details on the location? The key to ‘connect’ is that you both have the means to send and receive details on properties in a short period of time so that you can make decisions faster for a smoother transaction.
2. Have Your Commercial Broker Provide You with a General Growth Plan
This is key to any successful investment; you need to have your broker provide a growth plan for the location you are looking at with the details of the particular use. Take a quick 30 to review this plan with your broker and make sure that you are both on the same page.
3. Get Valuable Demographic Information for the Area you Intend to Buy in
This information is pretty straight forward, however your broker should be able to dig deep into the community, pull up detailed reports and present them to you so that you can have all of the information in front of you prior to making the investment decision. A few reports to look for are not only demographics but info and psychographics as well.
4. Set Your Expectations Low From the Start
I know that is the complete opposite as to what you want to hear when you are investing, but it’s a very competitive market. Don’t get anxious and jump on just any property, and make sure that you have a broker that acts aggressively on your behalf. Once you find that property and the research is done, take action. Also make sure that your broker eats, drinks and sleeps commercial and investment properties so that they are active and informed for your investment benefit.
5. Do Research on your Competition and the Businesses Surrounding Your Potential Purchase Area
Property owners can have significant impact on local events and property values. Make sure that you take the time whether it is on your own or with your broker to really get to know the area that you are looking at. Is it up and coming? How is the traffic? What do surrounding buildings and business look like? What is the potential in the area? You might even be able to grab area growth plans from the county; ask your broker for these details.