3 Tips for Buying Commercial Real Estate

The term commercial real estate refers to property that is used for commercial purposes. This could mean storefronts, land with the potential for profit, and rental properties. Examples of commercial property would be office buildings, malls, grocery stores, and more. Commercial properties are also divided into five categories such as multi-family, office, hospitality, retail, and industrial. 

Commercial real estate is subject to different laws, financing, and taxes than residential real estate. While the purchase of this type of property is an exciting investment, it can be a lengthy and complicated process that the average person isn’t familiar with. Since there is so much to be known before making such a big decision like this, here are a few tips for purchasing your first (or next) commercial real estate property.

Know Why You Want to Invest

Before you begin searching and investing time looking for commercial real estate, it’s vital to ask yourself why you are wanting to make this investment and if it’s right for you. If you are unsure of your ultimate goals, you may want to reconsider. Here are some questions you may want to ask yourself: 

  1. What kind of property do I want?
  2. What do I plan to use the property for?
  3. How much of a down payment can I make, and is this feasible?
  4. Will I need a property manager?

Arrange Your Financing

It is important to ensure that you can afford your investment before starting your search. Securing financing ahead of time allows you to create a budget and compare your financing options before committing to a deal. To find the best rates, speak with several lenders and consider various loan types.

If you know what kind of financing options you have before you begin your property search, you will know exactly what you can afford and the process won't be stalled.

Do Your Due Diligence

When you begin your search for a commercial property, your real estate agent will show you quite a few before you settle on one you think is right for you. Refrain from feeling rushed to purchase the first one you see.

It is important to consider the price, allowed uses, condition, and location. In areas near downtown, hospitals, universities, and busy areas, properties sell more quickly and for a higher price. Ask yourself some more questions such as:

  1. Is it worth taking risks for the potential rewards?
  2. Is there another property that would suit my needs better?
  3. What has this property been used for in the past?
  4. Is there any maintenance that would be required immediately? 

316 Realty Group is Here for You

It goes without saying that identifying a property to buy can take time, a lot of money, and the help of a professional is definitely needed. Finding someone who is aligned with your goals is important. Finding and purchasing commercial real estate is a  complicated process with many facets, and you'd be better off working with an expert than trying to figure it out on your own.

316 Realty Group offers commercial real estate services in the greater Houston, Dallas / Fort Worth, Austin, and  Waco markets. You can rely on our team to help you develop an investment strategy, search for properties to purchase, analyze the deal, acquire concessions, negotiate the terms, and identify the best options. Contact us today, we look forward to working with you!

What Are The Benefits of Working With A Real Estate Broker?

There is no doubt that we have an endless supply of resources online about real estate. From TV shows to youtube videos and blogs, we have so much information at our fingertips that makes us feel empowered to buy a home or sell our home on our own. If someone attempts to conquer the process alone, they may soon realize that buying or selling a home can be an overwhelming and tedious process.

That is why it is so important and to your advantage to hire a real estate broker to guide you through buying or selling your home. Here we will touch on some of the benefits of working with a real estate broker. 

Brokers Can Have a Strong Network

When working with a real estate broker to sell a home, a seller gets to benefit from the broker’s vast network of collaboration, such as other real estate brokers and their potential buyers. By having relationships with other brokers, they will have access to listings before they even hit the market. 

Your broker will also have a list of recommended contractors, real estate attorneys, home inspectors, service providers, and more at their disposal. Buyers and sellers altogether have access to resources that they would not have been able to obtain if they handled the transaction themselves.

Methodical Marketing & Exposure

When selling your home, everyone knows that exposure is everything. Real estate brokers have the capability of maximizing the exposure for your home through resources like the MLS (multiple listing service) and like mentioned above, through their relationships with other brokers in the community, they have access to listings before they even hit the market, among other insider information that you otherwise wouldn't know about it on your own.

Brokers Have Specific Negotiation Skills

The average person lacks the methodical and precise skills to negotiate a real estate transaction. Real estate brokers embody the skills and strategies needed to negotiate on your behalf during a transaction and are also able to provide you with a completely objective and professional opinion along the way. To ensure you sell for the most profitable price, and buy for the fairest price, it is in your best interest to have a real estate broker negotiating for you!

Brokers Can Reduce Risks When Doing Paperwork

It is easy and likely you will make mistakes or fall short when completing legal documentation if you are buying or selling a home on your own. There can be a great deal of documentation, and it can cause a great deal of stress or worry for a person. 

Having a real estate broker on your side to assist you and guide you through the process of completing all required legal documents is crucial. And if you're selling your home, failing to accurately complete a seller’s disclosure could lead to a lot of trouble that no one wants to face!

Key Takeaway

When it comes to buying a home or selling your home, it is an undeniable fact that a real estate broker is indispensable. At the end of the day, the broker is there to guide you every step of the way. No two transactions are alike, even if you have bought or sold before, there will always be bumps in the road or curveballs thrown your way that you aren’t better off handling alone. Between their relationships and networking, methodical marketing and exposure, negotiation skills, and guidance on completing legal documentation, a real estate broker at your side is a must. At 316 Realty Group, our brokerage of agents is ready and willing to champion your needs and interests!

What Does a Commercial Real Estate Broker Do?

We all know what residential real estate is all about and what those properties are used for: living. Commercial real estate, on the other hand, can be used in a plethora of ways, from a business to a health facility, to a warehouse, to apartment complexes, and more. Commercial real estate brokers must also be well-versed in tax and zoning rules, as well as market statistics, financial analysis, and more. To protect your best interests and get the best return on your investment, you should always hire a broker for any of your commercial real estate transactions, just as you wouldn’t build a house without an architect or file taxes without a CPA. Here we will go into more detail on what exactly commercial real estate brokers do. 


A commercial real estate broker assists clients in searching for and purchasing a commercial property, including performing a thorough search on listing platforms for any suitable properties and negotiating the best possible purchase price and terms for their clients.


A commercial real estate broker also assists clients in selling commercial real estate assets by conducting comprehensive market research to determine the best listing price, implementing advanced marketing strategies to attract eligible buyers, and negotiating the best sale conditions. Other aspects of the sale will also be handled by these brokers, such as organizing walk-throughs and marketing the property.


Lastly commercial real estate brokers assist landlords and tenants in finding commercial real estate premises to rent. They also negotiate the best lease terms for their clients and implement market research to set rent and other fees. Other responsibilities include locating high-quality renters, and when working on behalf of a tenant, locating the greatest deals on spaces that match the client’s specifications. 

Advantages of Hiring a Commercial Broker

Networking Locally 

Commercial real estate brokers establish connections with prominent members of the community where they plan to work. When a commercial space is on the market or a potential buyer appears in the area, this gives them a competitive advantage.

Knowing the Zoning Laws

Many people shy away from investing in commercial real estate due to the many complicated rules and regulations governing commercial real estate taxation. The fact that these rules and regulations differ across states, industries, and zones adds to the complexity. To perform the aforementioned procedures on behalf of their client and therefore eliminate a barrier to commercial real estate investment, a commercial real estate broker must have a thorough awareness of tax and zoning rules.

Client Negotiations

Commercial real estate brokers must be excellent negotiators and mediators because they deal with more than two parties when arranging a sale or lease. Conflicting incentives are common among the parties, which a commercial real estate professional can help resolve through talks. The ability to communicate and persuade is essential for a commercial real estate broker who wants to negotiate successfully.

Seeking the Help of a Broker in Texas?

It’s always in the best interest of one to have access to the knowledge and expertise of a commercial real estate broker when buying, selling, and leasing a commercial property. This definitely isn’t a task you want to take on by yourself! If you are searching for a space or even want to know what options are available to you, reach out to one of our agents with 316 Realty Group. We are always ready to exercise our professional expertise for you!