Chicago Illinois Commercial Property Sales Package

State:
Illinois
City:
Chicago
Control #:
IL-P021-PKG
Format:
Word; 
Rich Text
Instant download

Description

With this Commercial Property Sales Package, you will find many of the forms that are part of closing a commercial real estate transaction.


Included in your package are the following forms:



1. A Contract for the Sale and Purchase of a Commercial Lot or Land without a Broker;

2. A Option for the Sale and Purchase of a Commercial Building;

3. A Option for the Sale and Purchase of a Commercial Lot or Land;

4. An Addendum for Environmental Assessment of Threatened or Endangered Species or Wetlands;

5. An Addendum for Continued Marketing of Property by Seller due to Contingencies;

6. An Exchange Addendum to Contract for Tax Free Exchange under Section 1031;

7. A Tax Free Exchange Agreement pursuant to Section 1031; and

8. A Fixed Rate Promissory Note Secured by Commercial Real Estate.



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FAQ

Despite rising interest rates?with the potential for more hikes in the coming months?commercial real estate has seen success in 2022. Although the forecast varies among asset classes, the overall industry outlook remains positive heading into the second half of the year.

?As the leases are much longer, these properties usually have an investment value in excess of their bricks and mortar valuation. This means that you can acquire a vacant property and, if let on a strong lease to a good tenant, you will see an instant increase in value.?

However, price appreciation is where the largest component of the return can come from. Commercial real estate returns can vary widely based on the property type, location, and market conditions, but, according to Nolo, the typical investment returns between 6% and 12% annually.

How do you find good Commercial Property deals? 1 Local and national sales agents.2 Proactive Networking.3 Online search.4 Building personal profile on and off line.5 Auction listings.6 Sourcing agents.

Four Keys to Sourcing Good Deal Flow in Commercial Real Estate Key #1: Relationships. Commercial real estate brokers are the gatekeepers for many deals.Key #2: Clear Investment Criteria.Key #3: A Methodical and Data Driven Approach.Key #4: Multiple Offers.Interested in Learning More.

The best reason to invest in commercial over residential rentals is the earning potential. Commercial properties typically have an annual return off the purchase price between 6% and 12%, depending on the area, current economy, and external factors (such as a pandemic).

Net Operating Income To determine the NOI of a property add all sources of revenue (rent, leases, parking) then subtract all expenses (utilities, maintenance, taxes, but not mortgage) from that number. A property with a high NOI is the better investment.

However, price appreciation is where the largest component of the return can come from. Commercial real estate returns can vary widely based on the property type, location, and market conditions, but, according to Nolo, the typical investment returns between 6% and 12% annually.

6 Commercial Real Estate Valuation Methods Cost approach.Sales comparison approach.Income capitalization approach.Value per Gross Rent Multiplier.Value per door.Cost per rentable square foot.

Investors looking for a bargain price are likely to run into higher cap rates. This is also true for properties that need significant development or renovations. In these situations, higher cap rates between 8%-10% could be considered good.

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Chicago Illinois Commercial Property Sales Package