Tips for Purchasing a Commercial Property

If you’re thinking of purchasing a commercial property, you probably already know that there’s a lot to consider, especially if this is your first real estate investment.  If you’re just starting to get into the commercial property investments game, research is essential to ensure you don’t get in over your head and you’re making smart financial decisions. To help you along, we’re offering up a few tips that should help.

Know the area.

It’s easier to handle investments in an area you’re familiar with, whether you live there or just know the location well. You should be intimately aware of the current economic status, real estate market, and likelihood of renting the space out. Look into the history of the property to see if there have been issues with previous tenants, as well as the length of time between rentals.

Make some decisions about the current tenants.

If you’re purchasing a commercial property that already has tenants, you’re going to have to make some choices as the new owner. Legally you may have to honor their current leases, but after the lease is up, what then? Will you increase rent or ask current tenants to leave to make room for different businesses? Have there been any issues with receiving rent? What’s your vision for the property moving forward?

Consider whether or not to renovate.

Depending on the type of property you’re purchasing and the type of tenants you’d like to attract, you may need to invest in renovation. If you’re buying a building that needs essential repairs, those will come out of your pocket. You may also want to make other changes. For example, perhaps you want to attract technology professionals to your space. If that’s the case, you may want to invest in upgraded internet accessibility and modern touches to make the offices more appealing to that demographic. You may also decide to let tenants do their own renovating, in which case the point is moot.

Work with a real estate team that can find you the best properties.

Your business is only as strong as the partners behind it. Choose your real estate team wisely, and they’ll be there to guide you to the right properties for your needs. This will improve your portfolio and also give you the added knowledge of professionals in the field. Your success is their success.

Find a management team.

Real estate investment is incredibly lucrative, but also incredible demanding. Commercial properties are populated by business tenants, and those tenants must be managed. You may choose to do the management yourself, but this can easily become overwhelming. Consider handing the reigns over to a commercial management company like the Commercial Management Group, who will handle your property professionally and with experience.