As we near the end of the year, it’s important for commercial real estate professionals, business owners and those interested in purchasing or leasing commercial space to tie things up and prepare for the new year. There are things everyone can do to ensure a successful end to 2020 and beginning to 2021. Here are some commercial real estate tips for the end of the year.
Tips for CRE Professionals
Now is a good time for commercial real estate professionals to reach out to tenant representatives to get leases renewed. This is a great time to re-sign because not only do landlords want tenant stability, but tenants want stability as well. Secondly, professionals should take this time to organize and centralize all company data. Get all of your lease data, important dates, benchmarks and other information organized to help make better decisions for your company.
Thirdly, take some time to research and understand market data/trends to prepare for next year. Make sure that you maintain knowledge of how each of the properties in your portfolio are doing as well as properties in the surrounding area. Lastly, CRE professionals should consider requesting CAM audits to try and keep occupancy costs under control. Make sure to do your research on market averages to see where your CAM’s range before making any changes.
Tips for Business Owners
Just as CRE professionals should organize their data, so should small business owners. Employee information, vendors contacts, financials and any other important information should be organized. Speak to any employees, vendors or accountants if you need to get things in line, and create a plan for the next year to keep things straight as well. Secondly, this would be a good time to evaluate your website, social media and any other marketing you have done over the past year. Perform an in-depth audit of what worked, what didn’t work, and what you could do in the new year to increase your brand image and visibility.
Next, evaluate your inventory and supplies and make any necessary purchases before the end of the year. Buying these things before the new year gives you more to write off for this year’s taxes, which is always a good thing! Lastly, sit down with your other business partners or important employees to set goals for next year. Reflect on how things went this past year and use that to set new goals for next year. It’s always a great idea to enter the new year with a clear plan and achievable goals to use as motivation.
Tips for Those Interested in CRE
If you are interested in investing in commercial real estate this new year, there are some things you can do to prepare also. Just as professionals must keep and eye on the market, so should you. Begin paying attention to things such as market changes, trends, demographics, area growth and migration patterns to better determine what areas it would be smart to invest in. For example, many shopping malls are slowly becoming more vacant as in-person shopping has dwindled. On the other hand, warehouse and industrial space has become popular as many companies need space to fulfill the influx of e-commerce shopping.
Lastly, work with a local commercial real estate expert. They have the best knowledge of the area and will be able to help you find the best properties and rates. While real estate has become increasingly accessible to the average population, it can get overwhelming if you are not familiar with the industry. Let one of our experienced professionals help you find the perfect commercial real estate property for you this new year.
We hope these commercial real estate tips for the end of the year were helpful to you and your businesses. If your 2021 plans include leasing, selling or buying commercial property in Southeastern North Carolina, contact us and let us help you!