Getting started resources
Can anyone point me to some good getting started resources for commercial real estate? 

I'm a business owner, until now have only ever rented property. I've long considered buying a space out to use part fo our business, rent out the rest. I'm pretty green to commercial real estate though. Just looking for some basic resources to not do anything stupid out of the gate.

Do commercial real estate agents work like residential ones in terms of buyers/sellers agents? As in can I approach a commercial agent with a couple of properties I'd like to look at and go from there?
[{"id": "ejewbeh", "text": "To answer the last question - yes it\u2019s a similar relationship to residential. You\u2019ll want to find an agent who\u2019s knowledgeable of market activity and have their hand on the development pulse.\n\nAs far as resources online, there unfortunately aren\u2019t any that act as a general guide. Maybe articles from the CCIM network will contain some entry level information. \n\nYou are welcome to message me with questions. I\u2019m a commercial agent out of north central Florida, so there may be some differences with where you live but the basics should be roughly the same.", "replies": [{"id": "ejezmlb", "text": "Ok thanks - appreciate the offer to answer some questions. I can dm you if you'd prefer, but maybe some answers here might help others?\n\nWhat I'd like to do at this point is something like the following - if this is all standard practice I'll just contact some local guys. If I should do something different, let me know.\n\nThere's a couple of buildings I'm interested in, for those I'd like to know \n\n1 - All the current specifics that are available. Existing floor plans, existing tenants, current lease terms (as in - are any on long term leases that would still be in place after purchase etc). Property taxes.\n\n2 - Building operational costs - maintenance, typical utility costs, any engagements with service providers (for ex, if there is already someone engaged for snow removal, what are the terms, what do they pay etc. I assume these agreements dont convey, but in some cases would likely be easiest just to maintain)\n\n3 - Any particular terms of sale - immediate vacancy or other?\n\n4 - Any deferred maintenance\n\nAre these all typical things my agent (when I get one) can get from the listing agent? Are these normal things to ask for? I know with residential for example, you can ask for utility bills, is this common on CRE though? I mean for me, I would like to get as accurate as possible idea of the actual running/operational costs of the building. What about insurance etc? Should I get my own ballparks, or can I ask for theirs to get an idea?\n\nFor 4, I'd guess this would be like residential, they're probably not going to be completely forthcoming about \"oh yeah the furnace is half shot but we keep putting off replacing it\", I'd likely need to rely on inspections for this sort of thing...?\n\nOn inspections - does this work like residential? You make an offer pending inspections? Or do you inspect prior to offer? Are they the same kinds of inspectors as residential?\n\nFor tax implications - there are a lot of implications, depreciation etc, does your average CRE agent have a feel for that or is it better to engage an accountant during the process too?\n\nthere's a lot there, appreciate anything you can add on.", "replies": [{"id": "ejfqgpt", "text": "Sure, that's a good idea. It will also give other professionals an opportunity to give their feedback if needed.\n\nI'll answer this step by step. The best type of agency relationship you can have is being armed as with knowledge and using the agent as a resource to save you time and access information you wouldn't otherwise be able to get a hold of. Being able to ask for specific tasks to be executed will help make the process go smoothly.\n\n&amp;#x200B;\n\n1 - For listed property this should already be available in the listing presentation (if the owner wants it publicly out there). You can have your agent ask for this when approaching the listing agent prior to submitting an offer. It's not uncommon for the seller to request for an NDA if they feel they need it, but this information is typically provided prior to sale.\n\n&amp;#x200B;\n\n2 - You are essentially asking for a Pro Forma and depending on the sophistication of the seller, this should be readily available in a cost analysis spreadsheet. If they don't have it (here in FL we have some backwoods owners), the agent should be able to compile information provided verbally. You can further dig into this (with financial statements) during due diligence.\n\n&amp;#x200B;\n\n3 - This depends on if the building is currently leased or vacant. If leased, someone will have to pay off the remainder of the lease and that can be negotiated in the purchase price. There is always a way to nuance a sale through, and a good agent should be able to figure out what the seller wants and how to structure a deal to work for both parties. One deal I worked on last year, for instance, the seller's nephew ran a restaurant on the first floor of the subject property. Part of the terms of the deal was to provide time for him to relocate (which I helped him do).\n\n&amp;#x200B;\n\n4 - You answered yourself below. A commercial inspector will be able to provide you with the information you need on the buildings condition. Not all owners will be forthcoming, and not all are efficient at keeping their property up to date. Also, not the same type of inspectors as residential. \n\n&amp;#x200B;\n\nThese are all pretty typical pre-due diligence/due diligence requests a buyer of any scale would require. As for the utility bills/extra information - that's all up to what the seller is willing to disclose, though it can be added as a due diligence item (when you are in contract, you enter into a quasi-ownership state).\n\n&amp;#x200B;\n\nI'll add some other items below to help flesh this out further:\n\n&amp;#x200B;\n\n**Due diligence**: Residential due diligence periods typically run from 10 - 20 days in which you contact an appraiser/inspector/etc to come check out the house. Commercial has no typical range, though i often see anywhere between a 3 month - 1 year due diligence period. Much like residential, this is the time you run your inspections / in depth research to determine if you want to purchase the property and to back out and have your deposit refunded or renegotiate based on your findings.\n\n&amp;#x200B;\n\n**Taxes:** A great resource is your county's Tax Appraiser site (at least where I'm located). It's a public resource that can provide you with parcel/plat information including what the current owner paid for the property (and when), the sqftage, and link to property taxes paid. \n\nAs for the nuances of getting depreciation, avoided capital gains, or investing in a tax incentive zone (check out opportunity zones, they are pretty cool) an agent should have some basic knowledge but I'd always suggest consulting with an accountant. I can tell you all about 1031 exchanges, but I won't be able to tell you how it'll impact your individual taxes.\n\n&amp;#x200B;\n\n**BPO/CMA**: Definitely request one of these. Knowing the temperature of your market is just as important as knowing the seller's behavior. A solid report should should commercial properties that are similar that have sold in the last 5 years - based on like-kind usage and proximity. Key things to look for are: purchase price vs listing price, and average days on the market. This should give you a good idea on how aggressive you should be.\n\n&amp;#x200B;\n\nThese are all things you should request and expect from a good buyers side agent. Interview a few and ask what their approach would be in helping you purchase these properties. ", "replies": [{"id": "ejg07xw", "text": "Ok thanks, I really appreciate you taking the time with that. Sounds like 'get an agent' is the next best step, then get them to get whatever is already available.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]