SPONSORED EDITORIAL

So you have a commercial property that you want to sell or rent out and you don’t know who to turn to.

Maybe you grab the local newspaper or look online to see who is advertising properties local to you. You start telephoning around and eventually speak to an estate agent who usually sells or rents houses.

Invariably, they have access to Rightmove and Zoopla and have recently moved into the commercial property market.

In most cases this agent will use the same pricing model as they do for residential property. For example, letting your commercial property may cost you less than a commercial agent’s minimum fee (which is about 10% of the first year's’ rent) to let a property and between 1% and 2% to sell - so you decide to use them!

However, although the figures at first look attractive, have you made the right decision?

The difference between a commercial estate agent and a residential estate agent?

Firstly, the level of training is different. Around 90% of all property is residential and falls into a very narrow range of types such as house or flat and the number of bedrooms. Commercial property is much more complex.

The dynamics of retailing are completely different from industrial development land which in turn is completely different from hotels and guest houses. The only way a commercial estate agent can understand these is through training and experience.

With your commercial property, specialist help will be invaluable in securing the right deal for you. You can only get that expertise from a commercial agent.

They will fully understand the local market, have a huge list of contacts to turn to as well as knowing how best (and where) to market your property.

THE KEY POINTS

The Lease

When a property is let the landlord must ensure the appropriate terms, risks and responsibilities have been outlined in the lease. Lease’s can be based on a standard Royal Institution of Chartered Surveyors (RICS) or Law Society template or a solicitor's own refined template.

If the lease is invalid then not only will this cause difficulties for both landlord and tenant but this may seriously impact the value of the property and the price that may be achieved on sale.

Measurements

Commercial agents are likely to have been trained in measuring commercial property.

Certainly as RICS members they will be obligated to measure in accordance

with the latest measuring practice rules, the International Professional Measurement Standard, to ensure the highest of standards in the industry.

Did you know there are different bases of measurement dependant on the type of property? For example, an industrial unit will be measured differently from a shop which will be measured differently from an office block.

Training, knowledge and expertise

This is the game changer. A majority of commercial agents are professionally qualified, with a degree in a property-related subject. They will also be members of the RICS, ensuring that they have the most up-to-date information about their property sector.

They regularly undertake continuing professional development to keep updated with the commercial sector.

Contacts and advertising

You want a combination of skills from an agent selling or letting your commercial property: professionalism, an active contact network and the ability to promote the features of your property to its best advantage.

Consider if your estate agent is a specialist in understanding the commercial market and whether they have sufficient comparable evidence to give you a proper idea on the best price for rental or sale.

It is essential that agents build up a database of clients looking for property. As well as other advertising methods, agents will send your property details out directly to people that have enquired about similar sized and located properties.

For more info go to www.michaelparkes.co.uk