The probability for gain in commercial real estate is generally higher than in residential real estate. The good opportunities can be tougher to find, though. Use the following tips to better understand the market so you can find the right investment for you.
If you are considering purchasing a piece of property, be sure to investigate what the area’s unemployment rates, income levels and average property values are. Properties located near major employers, like hospitals, schools or distribution centers, are often more in demand at every price range.
Bring your digital camera along, and use it. Include all the defects in the photo, such as carpet stains, or holes in the walls.
Don’t be led by hype and fads when searching for commercial real estate. Don’t enter into any investment opportunity without doing the proper amount of research. If the property doesn’t suit you in the end, you may regret your hastiness. It could take up to a year for the right investment to materialize in your market.
As with other property purchases, pay attention to the three Ls: location, location, and location. Neighborhood is important, even when you are looking at commercial property. Compare its growth to similar areas. You’re not only thinking about the here and now; you want to look a decade down the line too. Pick an area with the potential for sustainable growth.
When interviewing potential brokers, ask them to tell you about their experience level with the type of commercial investments you are interested in. Look for someone who knows the area you are interested in. At that point, you might want to consider entering into an exclusive listing with that agent.
You now have a clear understanding of what it takes to work with commercial real estate. Maintain flexibility and think fast so you can steer your way through the constantly changing market of commercial real estate. By doing so, you will be in a position to recognize the good opportunities that others might miss, and make a deal that maximizes your profitability.Leave the first comment ▶