This warehouse was for sale in Pompano Beach before I wrapped my hands around it. I was door knocking in industrial plazas when I ran across the owner of this warehouse in Pompano Beach. The warehouse are well positioned in the area with close proximity to the Turnpike Express way, and just a few miles from I-95 highway. I like these warehouses as they are small bay and provide a good price point for warehouse buyers that may have a smaller budget. There are around 100 warehouses total in this complex with around a dozen or less per year selling.
Warehouse for sale with or without association
The warehouses that are for sale here range from 455 square feet to 1000 square feet typically. Some owners combine multiples warehouse bays together for their businesses. I’ve noticed there are not automotive dealers or mechanics or even food operators in here. Since this is a warehouse condo, there is an association that governs the uses in here. There are pros and cons to this. The pro is that they make sure they have owners in here that are respecting the rules, taking care of the property and providing a nice operating community. Also together they pool their money through monthly dues to make way for improvements as necessary, such as roof and paint repairs.
The negative to having an association is that there are always rules and regulations that exist. Not everyone likes rules, or even know how to follow them correctly. That is why freestanding buildings are key. A freestanding warehouse building for sale will allow you the flexibility to do almost whatever you want within reason from the city.
Interesting story, as an aggressive commercial real estate agent I like to find opportunities and not wait for the to fall on my lap. First off, I earned this listing by door-knocking. Secondly, I found the Buyer by doing Facebook marketing. I consider myself a good commercial broker and I am willing to go above and beyond in my opinion.
Commercial real estate agent
Personally I think it’s very important to work with a Commercial Realtor versus a residential Realtor when searching for a warehouse purchase or industrial property purchase. The reason why is they are two very different business models. Everytime I am working with a residential agent I can see the mistakes. They range from not understanding how to draft a property LOI (letter of intent), or even just the basic lingo pertaining to a commercial, real estate deal. Look, we all start somewhere, but that’s not the point here. Depending on what your goals are as a Buyer will determine how much knowledge you require of your real estate agent. Now back to my rant. Almost every time when working with a residential realtor the contract is not properly filled out. I’m constantly helping a residential agent with the LOI, the commercial contract and the lingo. Honestly, I’m happy to have then bring me a Buyer. However, they really should stick to their business model, which is residential real estate and refer out the commercial.
What tools do Commercial Real estate agents have?
A commercial real estate agent will have tools that a residential agent will not. Just today, a residential sent me a text; “Hey Adam, do you have the hook up in this building, I cannot get anyone to call me back.” That particular agent is actually very successful in residential, but it does not translate into the commercial world. Residential agents use the multiple listing service for their searches. The MLS is not very complete when it comes to commercial real estate as many commercial brokers do not list properties on there. So, what did I do for this agent? Well, its been a week since he’s heard back. Within a couple minutes, I was able to provide him the cell phone nad email of the listing Broker. He was using the consumer site to try and get in touch with these Brokers, and that site takes the lead into a catch-all and they have to go through an intake process. Not all the time, but on this asset yet. Since I pay for Costar and Loopnet I have all the access. Furthermore, I am doing deals weekly or monthly with these Brokers. Or at least I am speaking to them often.
It’s so important to hire the correct real estate agent! I understand these residential agents want to try and capture the opportunity and make money on both sides, but to what harm of the Buyer or Renter? I can tell you there will be delays on communication, and errors on the LOI, or lease and contract. There are very few residential agents that can operate in the commercial realm successfully, so I don’t fret. Most of the time I normally get the referrals. There is so much more that goes into setting up appointments and showing property in the commercial world. However, I have to admit, getting around in the commercial world is much harder than residential. It took me a year or so to break into the scene. Many Brokers for some reason can be stuck up, or simply they don’t want to work with you if they do not know you. Not all of them, but quite a bit. Let’s look at the dynamics real fast. If a residential agent is calling a Broker that sells ten, twenty or even fifty million-dollar buildings, that commercial Broker will know right away that the realtor is not in the commercial business and many times they assume their time is being wasted.
Zoning requirements in commerical real estate
A good commercial Broker will understand the zoning codes of the municipality and how the client will operate and use the space. Whether it’s a purchase or a lease, the zoning needs to allow the use or it’s a complete waste of time. For example, if you are trying to lease or purchase a warehouse how would you even know if you can put an auto body shop there? Or maybe you have a commissary kitchen or a karate studio. Sometimes a property could have multiple uses. I go into detail with another articel I wrote here. What would take a residential agent hours, days or a week to figure it out, a good commercial Broker could figure it out in minutes due to the experience and software that we have. We may already have done deals in that complex, or simply we know how to look it up quickly. Also, we could simply text the Broker since we have the relationship. This actually gets much more complicated when the use is not as of right, meaning the use is not allowed by the zoning put in place. Applying for a variance would be the next step, and that is a uphill battle somtimes.
My name is Adam Docktor with Native Realty and I love all things commercial real estate. I do warehouse sales and warehouse leasing. I also do retail sales and retail leasing. I also enjoy land sales and working for developers. We handle all things commercial, and have the most market share in Fort Lauderdale, but bleed into many cities surrounding the area. If you are looking for someone to work endless hours for you, then please call me. I’m ready to take you on as a client.
To understand more about how to pick a commercial agent feel free to read my other blog called: “Choosing the right Commercial Real Estate Agent.” If you happen to be looking for a realtor that specializes in retail sale or retail leasing, I wrote an aticle that sheds some light on that asset class. The article is called; “Leasing Smarts: 5 Reasons to Hire a Commercial Realtor for leasing retail space.”
