The Most Frequently Asked Questions in Our Brokerage Office

Navigating the world of commercial real estate (CRE) can be complex, whether you're buying, selling, or investing. At Fleske Commercial Group, we hear a lot of the same questions from our clients, so we’ve put together this guide to provide quick, expert answers.

📌 Remember: Every deal is unique. While these answers provide a basic foundation, always consult with a trusted broker, CPA, and attorney before making real estate decisions.

1. Is Now a Good Time to Buy Commercial Real Estate?

Market conditions vary by location, asset type, and interest rates. In a high-interest rate environment, cash buyers and investors have more leverage, while in a softer market, there may be opportunities for strategic acquisitions.
👉 Related Read: Investing in Commercial Real Estate Amid Rising Interest Rates | Blog | Fleske Commercial Group

2. How is Commercial Real Estate Valued?

CRE is valued based on income potential (cap rates), market comparables, and replacement costs. Unlike residential, commercial appraisals focus on the property’s ability to generate rental income and its overall investment return.
📌 Pro Tip: A broker who understands the local market can help analyze comps and future potential.

3. How Do I Search for Commercial Properties?

Unlike residential listings on Zillow, commercial properties aren’t all in one place. Brokers have access to private listings, LoopNet, CoStar, and off-market deals that aren’t always advertised.
💡 Best Approach: Work with a trusted commercial broker who can access exclusive listings and negotiate on your behalf.

4. Why Do Commercial Real Estate Contracts Take Longer Than Residential?

Commercial deals require due diligence, including lease reviews, zoning checks, environmental reports, and financing approvals. Unlike residential transactions, CRE deals involve business operations, not just property.

5. Is Now a Good Time to Sell?

The best time to sell depends on:
✅ Market demand & cap rates
✅ Current tenant leases (NNN leases add value)
✅ Interest rate trends

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📌 Key Takeaway: If you’re considering selling, consult with a CRE broker who understands market trends and can position your property for maximum value.

6. What Inspections Should I Get for a Commercial Property?

✔ Phase I Environmental Report (to check for contamination risks)
✔ Property Condition Report (for structural/mechanical issues)
✔ Zoning Compliance Review
✔ Lease Audits (if purchasing a tenant-occupied property)
📌 Pro Tip: Not every property needs every inspection—your broker can guide you on what’s necessary.

7. Is There Such a Thing as Creative Financing?

Yes! Options include:
✅ Seller financing (seller acts as the lender)
✅ Bridge loans (short-term financing for quick acquisitions)
✅ SBA 504 loans (for owner-occupied properties)
✅ Lease-to-own agreements
📌 Note: Always consult with a lender and CPA to evaluate the best financing structure for your investment. A good broker can tell you the options, a great broker can introduce you to great lenders!

8. Are There Any Tax Benefits to Owning Commercial Real Estate?

Absolutely. Common tax advantages include:
💰 Depreciation deductions (to offset rental income)
🏢 1031 Exchanges (to defer capital gains taxes)
🏦 Interest deductions (on loan payments)
📌 Reminder: Always consult with a CPA or tax attorney to maximize your savings, make sure you qualify and ensure compliance.

9. What’s the Difference Between an Owner/User and an Investor?

🏢 Owner/User: Buys a property to operate their own business (e.g., a law firm purchasing an office).
💰 Investor: Buys a property to lease to tenants and generate rental income.
📌 Key Consideration: Owner/users may qualify for SBA financing, while investors focus on cash flow and cap rates.

10. How Much Money Do I Need to Get Started in CRE?

✅ Down payment: Typically 20-30% of the property price for conventional loans.
✅ Reserves: Budget for operating costs, vacancies, and maintenance.
✅ Financing: Owner-occupied properties can sometimes qualify for as little as 10% down with SBA loans.
📌 Best Move: Work with a broker to explore financing options and structure deals that align with your investment goals.

Final Thoughts: Why You Should Work with a Trusted Commercial Broker?

Navigating commercial real estate is complex. The right broker:
✔ Uncovers off-market deals
✔ Negotiates favorable lease/purchase terms
✔ Guides you through financing & due diligence
✔ Protects your investment

📢 Need expert advice? Contact Fleske Commercial Group today for a free consultation!

👉 Explore More CRE Insights Here: Link to Blog

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