General Real Estate Questions
A commercial real estate agent offers guidance when buying, selling, or leasing property. Agents minimize the time wasted looking for buyers or locating tenants due to their extensive networks. Real estate agents also maximize value for both buyers and sellers by negotiating favorable terms amidst complex deals. Agents assist in accessing and evaluating deals, simplifying sales decisions, and solving future property challenges.
Listing and selling real estate involves property owners, tenants, and investors. The first step in this process consists of analyzing current market conditions with an understanding of the client’s goals and needs. This analysis allows the agent and seller to develop a niche for the property which in turn attracts potential tenants for the listing.
A typical deal involves completing various forms associated with leasing or owning a property with the assistance of your real estate agent. Next, the deal is made public with advertisements, marketing efforts, phone calls, and negotiations. Finally, a sales price is settled upon, followed by securing funding and signing proper paperwork to convey ownership.
First, an informed, honest and open relationship between landlord and tenant is needed. This type of relationship ensures that carefully drafted lease provisions protect all parties involved. Long-term lease contracts are encouraged to maintain licensing. Also, lease agreements must contain language stating that this type of business does not violate local laws, rules or codes that carve out protections from federal prohibition.
When purchasing a property, the following must be considered: financing, escrow, title insurance and regulatory requirements. Bank financing for cannabis related businesses is often hard to obtain due to federal law. Additionally, title companies fail to offer escrow services but will issue title insurance. However, insurance coverage for each business activity is subject to statutory and regulatory requirements. These coverages should be acquired based on client’s needs and budget.
When considering whether to lease or purchase a Cannabis property; cash flow, tax implications, and available financing are all factors that should be weighed. Leasing property is an easier task with a Cannabis friendly Landlord and certain contractual provisions.
Whereas owning property is subject to ownership in equitable title. It is advantageous and an attractive asset because it provides a safe haven for profits.
Navigating the world of real estate as a cannabis business owner can be extremely challenging. With the aid of CannaMercial Realty, finding the ideal location for your business is completed with relative ease. We promise due diligence with research and communication.
Zoning restrictions are often determined and implemented by local regulators. Local requirements differ based upon use and distance to either cluster or deter clustering of certain business types. Zoning requirements in obtaining licensure consist of maintaining certain distances from schools, daycares or houses of worship. Local and state ordinances must adhere in order to determine applicable zoning requirements.
Markets trends on a local level are tied to local laws and regulations, which is why legislation dictates how businesses run.
Once cannabis legalization occurs, implementation of law increases demand for commercial properties, including retail, industrial and land. This is strengthened by a strong tenant base that repurposes and updates underutilized or neglected properties.
It goes without saying that the value in commercial real estate is produced through the economic value of rent and capital gain. So, value is determined by using methods of comparison with other recently sold commercial properties in the same general area.