Qualities Of A Great Commercial Real Estate Purchase
Posted on: 29 September 2016
Buying a piece of commercial real estate is a big decision, and there are a lot of different factors to consider in the deal. Here are some of the most important qualities for a hot commercial real estate deal.
In a Hot Area
The first thing to look at is whether the piece of real estate is in an area that's hot or up-and-coming. You might want to look at some of the deals that have closed recently. Are the prices trending upwards? Look into the local business scene; are more businesses moving in or moving out? If you don't have a lot of expertise in your local commerce scene, it helps to get a local commercial real estate broker on your side to help you assess the lay of the land.
Room to Customize the Space
Another major benefit is having a piece of commercial property that is easy to customize for your renters' needs. Many commercial renters look for the option of taking a smaller or larger piece of the building, depending on their needs. For instance, startup tenants may look for a building that gives them the ability to grow into a bigger space. You will be rewarded in the form of more tenant options if you are able to accommodate different sizing needs. This can be accomplished, for instance, with a building that has a mixture of open spaces and connected suites.
Multi-Use Allowed
Another potential benefit for your developments is if the property is in a multi-use zoning area. That means you have the opportunity to develop your commercial real estate into a residential or commercial property, or both. You may require extra permits, so check with your municipality on the rules for a multi-use building in your zoning area.
Fits with Your Development Goals
If you have specific development goals for the property, be sure to check with the local building codes and any building associations that apply and make sure that your plans are valid. For instance, if you are looking at a piece of waterfront property and you may want to build a dock, be sure that the neighborhood's regulations allow it.
Projected to Bring in Good Returns
When you buy commercial real estate, you're losing out on cash that could have been invested elsewhere. Make sure you get a commercial real estate broker that can consider a wide range of factors to project how much income your property could bring in.
For more information on commercial real estate, contact a company like Colton Commercial.
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