AboutMike Fortunato Expertise Can answer questions on all aspects of commercial real estate management, including lease administration, eviction issues, financial reporting and budgeting, asset valuation/enhancement, marketing & leasing, and site maintenance and repairs. 20+ years of real estate management.
Experience 20+ years in commercial management. Current own and operate property management company in southern California.
Question QUESTION: My father owns an Upholstery Shop and the property which he runs it out of. I'm trying to get him to retire (stress and health issues) and lease out the property which is in an excellent location...corner of Beverly Blvd and Atlantic Blvd in East Los Angeles. Near East Los Angeles College, Kaiser and soon home of the East Los Angeles Light Rail Station which is already being built. The building is 2700 sqft and the entire property itself is 12,000 sqft with parking in back and front. My parents don't even know where to begin and think they need to remodel and pump money into the building. I think they should see if anyone is even interested first. What should we/they do to even begin the process?
ANSWER: First thing I would recommend is to contact a local commercial (not residential) real estate broker, preferably someone who specializes in properties in your area. They should be able to do a market analysis and provide an informed opinion on what would be the best and most profitable use as a real estate investment. Most brokers will do this at no charge, so long as you agree to list the property with them when you elect to find a tenant. As you mentioned, I wouldn't recommend spending a bunch of money on the building at this point, except maybe some relatively cheap cosmetic improvements to increase its curb appeal.
Mike F.
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QUESTION: Mike,
I have been looking for a local commercial real estate broker as you suggested. But there are so many that I can't decide who would be the best to meet with. Do you have any suggestions on selecting the right broker?
Answer Most brokers are basically the same, in that they have the same tools and resources available to them to perform their jobs, and they all charge around the same fees. It really comes down to finding someone that you are comfortable with, and who knows your immediate area well. You'll probably just need to interview a couple of them to decide. To narrow it down to only those who are active in your immediate area, you could simply drive around looking at who seems to have the most signs up on local properties. That shouldn't be your only criteria, but it will provide a starting point.
