F.A.Q.
F.A.Q.
Q. Why should I work with a Commercial/Industrial Broker and Agent?
A. Real Estate Professionals in the Commercial/Industrial Field don’t sell just houses; we work in the business field as well. We’ll guide you through Phase I evaluations, discuss your power needs, load limits for floors and Tenant or Buyer build out plans. As Commercial/Industrial Agents, we work in the spaces that house your business.
Q. Isn’t REALTOR®, just another word for Real Estate Agent?
A. Absolutely not. REALTOR® is the official designation for a national organization of Real Estate Agents who have gone beyond the basic training required by the state. REALTORS® take additional classes in ethics and training to maintain their designation. REALTORS® belong to Boards of REALTORS®, which are the local governing body for the National Organization. REALTORS® cooperate in transactions with other REALTORS® twice as often as independent agents cooperate with each other. And, the REALTORS®’ Code of Ethics holds us to a higher standard of practice than Non- REALTOR® agents.
Q. What Does Net, Net, Net Mean?
A. Basically, Net, Net, Net means that, in addition to paying a Base Rent or Square Foot Cost, you will be responsible for all other expenses relating to the demised premises. These Expenses cover Real Estate Taxes, Insurance, Landscaping, Snow Plowing, Trash Removal, all utilities, building and systems maintenance and more.
Q. What are the Costs of the Nets in a Lease?
A. These costs vary from Building to Building and from town to town, but for the most part, Industrial buildings will cost between $1.50 to $3.00 per square foot and office buildings will run from $5.50 to $7.00 per square foot.
Q. What are C.A.M. charges?
A. C.A.M. (Common Area Maintenance) charges are for costs related to the expenses for the Common Area such as Exterior and Lobby Lighting, Janitorial in common areas, Landscaping, Snowplowing, Elevators and more. These costs will be addressed in the formal lease as to how they are to be paid, i.e.: monthly, yearly, etc.
Q. What Down Payment do banks require for a Commercial Loan?
A. Bank Requirements depend on many things, your financial strength, credit worthiness, and your relation with your banker. The amount a bank looks for as a down payment will vary from bank to bank but generally most banks will require a 20% to 25% down payment.
Q. Once I identify the Space/Building I want to Lease or Buy, How do I proceed?
A. After you decide which facility best suits your business, you should submit a Proposal to Lease, Offer to Buy or Letter of Intent to the building’s owner. The RE/MAX 2000 Commercial Professional, with whom you are working, will help you draft any of these three documents and recommend that your attorney review them. Your attorney should promptly review all correspondence of this type, prior to submission to the owner, or the document should contain a contingency for legal review by Tenant/Buyer’s Counsel.
