Commercial real estate investing is quite a bit different than residential or other types of real estate purchases. The following tips will help you make a tidy profit from your commercial real estate endeavors.
Bugs and rodents are always looking to ruin your property, so factor pest control into your business strategy when renting commercial property. It is a good idea to consult your rental agent for information on pest control policies, especially if the area your property is located in is known for a high population of insects and rodents.
Location is the most important factor in choosing a commercial property to buy. When investing in a property, consider what type of neighborhood it is located in. You will also want to calculate growth expectations by comparing similar neighborhoods. You want to know that the community will still be decent and growing a decade from now.
Think larger when you’re thinking about two commercial properties that are viable. If you will be financing the purchase, you should take into account that doing so will require just as much time and effort for a small lot as it will for a larger lot. This works in the same way as buying bulk items from Costco. You buy large numbers of items to pay less per item.
Don’t become greedy and over-inflate your real estate asking price. Many things alter the value of your property./
Consider the surrounding area when you buy a piece of commercial real estate. If you are buying the property in a more expensive neighborhood your business will most likely be a lot more successful, people there have more to spend. If the products and services you offer are more middle class or less affluent, then purchase in an area where there are more buyers suited to your business.
Aim to avoid default before you sign a real estate lease. The tenant will then be less likely to violate these terms. Once a default happens, you’ll be in big trouble!
Prior to searching for a real estate property to invest in, figure out exactly what you would want in an ideal commercial property. Make a list of the property features most important for you, such as square footage, number of offices, conference rooms, and restrooms.
Make sure you know who does emergency maintenance work if you rent commercial property for your business. Get a list of emergency maintenance contacts from your landlord. Keep the phone numbers in a convenient place, and know how long it will take them to respond if needed. Your landlord should be able to provide you a list of emergency contacts so that you can map out a safe and well organized emergency plan, in case an emergency happens during normal business hours.
A variety of kinds of commercial property real estate brokers exist. So-called “full service” brokers represent both tenants and landlords, while there are other brokers that work exclusively with tenants. You may be helped much more with a broker who just works with the tenant, as that person most likely has more experience in handling tenants successfully.
As you can see, there are a lot of things to consider when shopping for commercial real estate. In order to get the best possible deal, be sure to follow this article’s advice.