Some people are fine playing the real estate game by focusing on homes, apartments, and other residences. But others like to take part in the more complex, but often more rewarding area of commercial real estate.
This includes helping companies find the best location to offer their products or services; learning about zoning topics, and dealing with leases instead of longer-term mortgages like in home financing.
Some people also like being able to focus on commercial real estate because there is such a variety of properties available, from tiny pop-up stores to massive skyscrapers that can house all sorts of businesses.
Plus, most homes only have one primary use – living – but there can be all sorts of commercial real estate properties, and each has different needs for space, features, and infrastructure. An office may require different structural and space needs than a welding shop. Offices should be easy to get to, preferably in a higher-population area in a community. Workers might want to have other amenities near them like restaurants, public transit and more.
At the same time, a warehouse or large-scale manufacturing company might be more comfortable being away from the main population, since it might be noisier, have more traffic, larger trucks, and more shifts coming and going all day.
Being part of commercial real estate investing can be appealing for people because there is less competition. You can build good relationships with tenants and any property management firms you work with.
For those interested in getting started, it helps to learn about not only the industries you want to attract but common types of real estate needs, such as fair market value for lease prices, and common conflicts between owners and tenants.
Once you have a possible tenant in mind, it’s also important to learn about them, including their financial info to avoid possible problems later.
It also helps to learn about similar industries in the area you are considering getting involved in. Do they seem successful there? Or is there a lot of turnover?
For more strategies visit Emerald Valley Financial Services.
