4 Steps To Take To Invest In The Right Commercial Real Estate

  Author: Sanjay Sharma

4 Steps to Take to Invest in the Right Commercial Real Estate

As an investor interested in real estate, your choice is not simply restricted to residential property or land. You can also consider investing in commercial properties. If you are wondering how to get started, here are four things to keep in mind so that you get into the investing groove.

Always invest in Grade A office property Top quality office properties are in short supply in most urban centres. Hence, they command a premium compared to other categories of office properties. When looking to invest in commercial properties, be on the lookout for this category of commercial properties. Investing in such a property would mean a higher rental income.

Choose the location carefully Ideally, stick to properties in prime locations. Remember, price of commercial property is always likely to appreciate more in prime locations. Also, it is easier to get a tenant in good locations. This can make a lot of difference to your returns from the investment in commercial property. If it remains vacant for a long period, it will result in a loss. Also, it is easier to get a loan for buying prime location properties.

Consider investments in smaller areas in Grade A buildings Properties in grade A locations will be more expensive. If you have a limited budget, you can consider investing in a small areas in Grade A location rather than bigger areas in low demand locations. You can then let out your commercial property to institutions like banks for uses like ATMs and still get high rentals.

Get a real estate advisor for finding the right tenant A good tenant will help you earn a steady income from the commercial property. But finding the right tenant who is willing to pay the right rent may be difficult as the commercial real estate property market is huge and fragmented.  Finding a good real estate advisor is thus very important so that you get the rental income which is so attractive from a commercial property.

Investments in commercial property are something individual investors can do without too much fuss. The key is to remember the important rules of the game for commercial real estate investing.