Real estate expert: expect a sharp drop in prices, not worth it, you will have to negotiate

Meanwhile, a series of changes are expected in the commercial premises market. In a press release, Capital’s real estate broker, Gina Mackevičienė, shares her views that due to the increasing or decreasing number of employees, companies have to change locations, and the requirements changed to ensure a safe distance. they can force caterers and other institutions to move to more spacious locations. places. the same number of clients as before the pandemic.

The rules will be dictated ensuring the safety of employees and customers.

Regarding the impact of the pandemic, the expert believes that the current situation should have a stronger impact on the commercial premises market. “Some companies are expanding rapidly, hiring more people and having to change premises, while others are reducing the number of employees, switching to teleworking, reducing the need for premises, having to change them for smaller ones or handing them over entirely” , G commented Mackevičienė.

However, the changing number of employees, he said, is not the only reason for the change. Safety distances and space per employee are increasingly important: “Office space requirements per employee are likely to change over time and greater distances can be maintained to ensure safety. Demand for open-plan offices is also likely to decline, as people who work in individual offices are less likely to be infected than their colleagues. “

Keeping your distance, according to a real estate expert, can remain relevant even after opening cafes and restaurants. “As in offices, but also in restaurants and cafes, there are likely to be requirements to maintain a certain distance between tables, which would require more space to serve the same number of customers as before the pandemic,” he said. that, for example, in recent years, small cafes / restaurants of 60-150 square meters have been popular in Kaunas, but this may change in the future due to security requirements.

Negotiate better conditions even during quarantine

According to G. Mackevičienė, the property market was affected by the restriction of movement between municipalities, but after its launch, activity should increase. “I often hear from buyers who want to inspect their houses that they cannot come for an inspection because they live in another municipality and therefore postpone it to a later date, which means that the freedom of movement between municipalities, activates”, – shares the interlocutor their intuitions.

Spring, according to her, is always a more active time, because then the purchase of farms, gardens and land begins, and Lithuanians are willing to invest both their own money and that of the bank in real estate.

If you have already found a commercial space that meets your needs, according to G. Mackevičienė, you should not wait for prices to drop, because the property market does not react so quickly. “I said during the first quarantine that this market does not react as fast and prices will not drop suddenly. This is supported by both economists and, in fact, stagnation for a while, and then gradually rose again. There has always been a certain percentage of empty premises that can be bought or rented, but waiting for a very significant change in prices is not worth it, so if you find a premises that suits your needs, don’t sit around or wait – the The expert advises and suggests not being shy about negotiating better terms with building owners. You can ask for discounts for a certain period, reserve the premises at the time of hiring and start paying when the businesses open or agree to review the conditions, depending on the quarantine situation ”.

According to the real estate broker, it is always worth negotiating and must be done now.

“You don’t have to expect to be able to pay for half; the discounts can be non-monetary. For example, maybe you need a deferment of payment or will you agree not to pay the period while the refurbishment is done? Or maybe the landlord will agree to equip the premises according to the needs of the tenant in charge? It is necessary to seek compromises “, says the expert about the benefits of the negotiations and points out that the pandemic has brought another new trend: both owners and tenants are increasingly cautious and, Sometimes they even ask for business plans to insure, so such a request should no longer surprise.

The business needs to get closer to the person

When choosing a business premises, according to the broker, it is more difficult for an entrepreneur to look from the client’s perspective, what a specialist can do with more determination. “It is worth listening to the opinion of a specialist, even if he thinks he knows everything about your business. Sometimes there are nuances that the entrepreneur himself does not notice, and the expert is faced with several examples, so he can advise on the design of facilities, choice of location or other nuances, notes G. Mackevičienė. “Most of the time, companies want to establish themselves in prestigious locations, but it is often not a convenient option for their clients: the company has to get closer to the person, not the person looking for a business in the city center. “

If you still decide that you do not need the services of a specialist, the expert advises you to look for a new tenant the same day you find out that the premises will be unoccupied. However, if a new client cannot be found in two months, the broker offers to take advantage of at least one free consultation. “If your premises are commercial, located on the ground floor and in a familiar building, you probably will not need a real estate specialist and will find a new tenant very quickly, but if that is not the case, there should be no delay for more than a few months. Often companies turn directly to brokers, so the process with their help is faster ”, G. Mackevičienė shares his experience.

Here are some tips to help you sell

According to G. Mackevičienė, there are simple tools that can be used to increase the chances of finding a customer easily without the help of experts. According to G. Mackevičienė, it is important for the customer to see their business on their premises, so they should look aesthetically neat, but it would not be necessary to invest a lot in it. “If your premises have been in order for a long time, you need to embellish the aesthetic image, for example, repaint the walls in light color. You should not invest a lot in this, because a new tenant may have a different vision than you, but a good first impression is necessary – the expert talks about the necessary adjustments. “It is also important that the space of the premises is exposed, so it must be emptied and, for example, broken skylights or dirty carpets will not add attraction to the object either.”

And it remains one of the most important problems: the cost of the facilities. Because what should be is determined by the market, it is not recommended to do so based on similar advertisements.

“It is often difficult to determine the actual sale price, it is always dictated by the market. If a buyer has approached you and offers, for example, a third price lower than you want, it is worth considering if you have not asked too much, says the expert, adding that these types of situations can be avoided when the price is set by the property appraiser. “A property appraisal can not only help a buyer who wants to buy a premises with a loan, but also when it comes to the business: a property appraisal is helpful in justifying the price to shareholders. “