Commercial Property Investment
If you are considering commercial property investment opportunities the following information may be of
importance to you.
Commercial investment opportunities include those in retail, industrial, and office space. Each has its
own unique set of circumstances you need to be aware of to compare opportunities and get the best deals.
You need to research these investment opportunities and get the vitals on rates for rent that is comparable to
other rental spaces in the area. Offering good lease terms on a well managed property will attract the type of
tenants you really want.
You will also need to take into consideration what it will take to run the property. Will
the rent of the property cover the costs of maintaining the building? If other properties in the area are charging
more for rent than you plan to, you need to ask yourself if the rent you are charging will offset the costs of
maintenance. Carefully researched comps in the area should be your guide.
Other aspects of commercial property investment are location and availability of adequate parking. Is there
adequate on street parking or is there a parking lot? A business that is not easy to get to will not sustain a good
customer base and will eventually fail. As an investor in the commercial property you need to make sure that the
location is conducive to maintaining a successful business.
Along with the location and parking is the aspect of accessibility by public transportation. Is the property on
a bus route so people without their own form of transportation can get to the property? How are the roads leading
up to the property? Are they in good repair or do they need work? You could check with the county road commissioner
and see if road construction is slated for that area in the near future or not.
Looks and functionality are important in investing also. The property needs to flow from the front door to the
back of the store. Tenants will look for this functionality and if it is there it will attract them to signing a
rental agreement with you.
I am not sure what the standard rules are but I know someone who was interested in renting some commercial
property and went to a brand new building. The owner offered to basically build to suit and said the prospective
renter had to put up ten thousand dollars to finish the building. I do not think that is a proper way to conduct
business. The building should have been finished and all that should have been negotiated was the rent for the
space they were interested in. The owner lost a potential renter because what they were "offering" was not
appealing in the least.
Before investing in a commercial property you should make sure the utilities and other amenities are in good
working order. Update these services as necessary so they will stay in good working order.
A commercial property investment is as risky as any other type of investment and these tips will ensure you make
an informed decision as to whether or not you want to venture into commercial investing.