Whether you are a seasoned investor, or you're researching for your first property there is always a certain risk factor that makes us hesitate before signing the dotted line. Likely, you're looking to make money, and you've found that commercial real estate has the potential to expand your business. However, if not careful you could find yourself shelling out much more money than you had ever anticipated.
So how can one determine whether they're making a good decision? First, like any investment, commercial real estate does have a certain risk factor attached, but those who are most successful know to look for when purchasing.
We have rounded up the best advice shared by top real estate investors. Take a look at what tips they urged investors to consider before purchasing:
Larger Properties show more Rent Growth
Go Big or Go home; larger properties have a greater opportunity over smaller properties according to recent studies conducted by CoStar. After taking a careful analysis of retail properties, apartments, and buildings, CoStar found that buildings had the largest rent increase. assets that have a property size increase by 50% there is a $1.20 increase per square foot. This is a tidbit worth considering when deciding which type of property, you would prefer to purchase.
Know Your Market
The market is ever changing, that's why it's important to stay up to date on market trends. For instance, investors interested in space may consider looking at Texas. In 2017 Austin averaged 11-15% in vacancy in parallel of having 15 properties with approximately 2.57 million in square footage. Because Austin is expected to grow its tech industry it is a number one consideration for investors. Staying up to date on market trends, like this can allow you to invest wisely, sooner.
Consider Area Demographics and Trends
Imagine purchasing commercial property just to drown in bureaucratic red tape? Know your area-the culture of the neighborhood, the condition of the land, everything. If you plan to develop and maintain a long-term relationship at the property don't fail to do your due diligence. A local broker may be a worthy investment, helping you navigate local authoritative agencies and giving you a briefing on what to expect a long Th. way.
In comparison to other investments, like residential, Commercial Real Estate takes much longer. This is not something to rush into, take your time, do your homework and ask a lot of questions. It does take longer, but the payout is much larger.
Consider Hiring a Commercial Real Estate Agent
You can navigate the deal yourself of course, but sometimes the process can be overwhelming. Don't underestimate the benefits of a commercial agent. They can help you find a great property and walk you through the negotiation process.
All in all, Commercial real estate is a worthy market to place your interests. But like any good investment, it can withstand the test of research. Take your time and be knowledgeable of what you are getting into. We urge you to subscribe to our monthly newsletter complete with market updates, property listings, and area trends. Subscribe today!
Real Estate Articles / Jun 19, 2023
The post-pandemic era brought several changes to the real estate market, specifically retail real estate and retail investment. Market trends for retail investment are on the rise. This is the right time to invest in real estate.
Real Estate Articles / Feb 22, 2023
Grocery-anchored shopping centers are on the rise in the retail sector. They are the best investment in commercial real estate. It is low risk and long term.
Real Estate Articles / Dec 28, 2022
2023 commercial real estate predictions are here. Find out which is the best investment opportunities are best for you. Make money with commercial real estate.
Real Estate Articles / Aug 08, 2022
Here’s how you can take advantage of rising interest rates. Advantages of investing during high interest rates are listed below. Invest in real estate today.
Real Estate Articles / Jul 26, 2023
There are still opportunities to earn money from short-term rentals, despite the ongoing decline. strategic investments and a proactive approach can lead to success in the evolving short-term rental industry.
Real Estate Articles / Mar 02, 2019
The US continues to be the world\'s leading recipient of cross-border capital, and it has no plans of slowing down. During the first half of 2017 the United States attracted 19.8 billion U.S dollars from foreign investors.
Real Estate Articles / May 20, 2023
Population rise causes a rise in need for medical institutes, hospitals and other commercial real estate in Cypress, Texas.
Real Estate Articles / Oct 27, 2023
Texas\' Landmark Property Tax Reform: Securing Affordable and Sustainable Homeownership for Texans, Envisioning Average Yearly Savings of $1,300.
Real Estate Articles / Feb 09, 2022
Want to invest and make money? We have listed out the pros and cons of the real estate market and the stock market so that you can decide if you want to invest in stocks or real estate.