An ideal commercial real estate team consists of more than just you and a broker. Buying a building is usually a multi-million dollar transaction, and building a comprehensive team of experts requires a relatively small investment of time and money. Every one of these professionals can add value to the transaction and help to ensure that you get the right building at the right price:
Architect
Architects are experts in managing and controlling space in commercial real estate. While they can be helpful in planning your tenant improvements, their trained eye can also help you spot ways to transform a building that might seem to be otherwise unsuitable. Being able to see opportunities that other buyers can't may put you in a position to buy a building that has sat on the market and been discounted.
Engineer
An engineer can help you understand what the building can physically support. While an architect tells you what you should do and what could happen, an engineer tells you what will. They're also indispensable for uncovering structural issues with a building before you buy it.
General Contractor
General contractors serve two purposes in the future process. First, they can tell you what the ideas you receive from your architect or engineer will cost to implement. Second, they're the ones that will go through the building and assess its condition. You may even want to supplement their advice with that of specialized sub-contractors in roofing, HVAC or other trades.
Environmental Engineer
In some parts of the country, commercial real estate brokers say that every corner was once a gas station. It's hard to know what lurks under a building and the risk of buying a contaminated property is significant, especially in industrial areas. An environmental engineer can both review your property in its current condition and research the historical record to find out what might have been there. If necessary, he can also complete a Phase 1 or Phase 2 environmental report.
Legal Counsel
As letters of intent and purchase agreements start to circulate, your legal counsel can help you manage your exposure. Attorneys can also play a role in the due diligence process by reviewing leases as well as in the lending process by reviewing loan documents. When selecting an attorney, choose a commercial real estate specialist - a general purpose real estate attorney might not have the necessary knowledge.
CPA / Tax Advisor
CPAs and tax advisors can help you find ways to minimize your tax exposure when buying a building, such as using funds from a 1031 exchange or by doing cost segregation to accelerate your depreciation and front-load your tax write-offs. As with an attorney, an accountant remains useful through the due diligence process if the building has any operating statements or financial data that require review. He can also help you prepare your application package for your lender.
Lender
Working with a commercial real estate lender from the beginning of the process will help you to understand what your total acquisition costs will be and how much equity you will need to provide. The sooner he is involved, the better understanding he will have of your objectives, helping him to sell you to the eventual lender or loan committee.
Broker
A professional commercial real estate broker doesn't just help you find properties and manage the offering process. He can also give you pricing information and even help you understand the property's positioning in the market for your future exit strategy. Brokers are also skilled negotiators of business and real estate points.
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