If you know what you’re getting into, buying commercial property can be a great investment. This asset provides a huge potential for income that is attractive to many real estate investors. Commercial real estate is known to have a higher return on investment compared to residential properties. Purchasing commercial real estate may also bring more flexible lease terms and less personal time commitment. Investors in commercial real estate may also find more attractive financing options and have better equity appreciation.
What do you need before buying commercial property?
As you’re gearing up to invest in commercial real estate, be sure to seek out a professional commercial real estate broker. Ideally, you’ll want to find someone who is experienced, established in the industry, and has had positive results. Of course, there is a cost associated with hiring a broker. Typically, real estate brokers take around 6% of the purchase price of the sale. Still, this cost is usually worth it.
You should also look for an experienced commercial real estate attorney. This expert can give you legal guidance through each aspect of the buying journey, from finding the deal to negotiating terms and prices. A good broker and lawyer can save you a lot of time, pain, and money.
After securing your commercial real estate professionals, you’ll likely be introduced to many different types of commercial properties for sale. For financial and business purposes, you’ll need to know about the differences between office buildings, industrial properties, retail properties, apartment buildings, and every other type of commercial real estate. Make sure to do your due diligence and learn the pros and cons of each property type. You should also take a look at your personal needs and financial goals. Then determine which type of real estate best fits your situation. Your commercial real estate broker and attorney should be of assistance here, but finding out what a property is zoned for will also make a difference in how you should proceed.
How do you find the right commercial property for your own business?
When deciding on the best commercial property to invest in, you’ll need to evaluate the market, look at your different financing options, and determine your potential return on investment. Take into consideration what each potential space would be used for, and make sure that the property’s design aligns with its intended function. It’s important to note that this overall process may be longer than normal investment deals. Still, your diligence may have a large payoff if you can handle an extended timeline.
To Sum It All Up…
So, the short answer to the question “Is Buying Commercial Property A Good Investment?” is yes! But this is only if you have the knowledge, vision, financial capabilities, and resources to move forward.
Do you have a commercial property that needs to be built from the ground up, or redesigned and renovated? We can help! Contact Sahene Construction today for more information.
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