Although commercial real estate is more risky, the rewards are generally higher, as well. The good opportunities can be tougher to find, though. Here is some advice to assist you in making better informed decisions regarding commercial property investments.
Clarify how much space is available in square footage. There are two ways of measuring commercial real estate property. You can measure in usable square feet to determine the size of the area in which you will conduct business. You can also measure by total square feet for the complete size of the edifice, including areas that will not be in public use. If you know both of these values, things will be easier for you.
Do some research on the internet to learn more about real estate and investing, whether you have a lot of experience already or are completely green on the matter. It is always best to work with as much information as possible, so take the time to absorb everything you can when working with commercial real estate.
You could edit or lead a newsletter regarding commercial properties in your community, or contribute regular content to social media. Keep your investors in the know so you can use them again on future deals.
Another factor to be aware of when shopping for property to rent or lease is who pays for pest control. It is a good idea to consult your rental agent for information on pest control policies, especially if the area your property is located in is known for a high population of insects and rodents.
Consider any tax deductions you might get from your commercial real estate investment. Depreciation benefits and interest reductions are given to investors in commercial real estate. One side effect of investing is that sometimes investors receive income that can’t be spent, because it’s in an unspendable form, yet is taxed as income. Find out if you will be getting this kind of income before you invest.
Closely check the surrounding environment of your property. You may be liable for cleanup of a property that has been environmentally damaged from prior use. Is the property you’re considering purchasing located in a flood zone? Take the time go think things over before taking action. There are environmental assessment organizations who can provide information about a specific area if you contact them.
Emergency maintenance should always be on your need to know list. Speak with your landlord, and ask who is in charge of emergency repair work at your home or office. Always keep this important contact information at hand, including average turnaround times. Use any advice you can gather from a landlord to protect your customers with properly configured emergency plans.
Create a reputation of being an expert by starting a blog on your website. Increased traffic leads to a larger potential customer base and more sales and signed leases.
Now you have the basic tools of real estate investment. Remain flexible and continue to stay nimble as you make your way through the many steps leading to owning your own property. By doing this, you can catch opportunities that others miss, capitalizing on the profitability of your business.