Buying Commercial Property for Investment – Property Research Checklist
Research Pays Off When Buying Commercial Property for Investment Income…
Investing in commercial real estate requires an understanding of the market before buying a commercial property for investment income. You should start with a detailed property research checklist based on the commercial asset you’re interested in purchasing. Also, think about if you’re looking for a short-term or a long-term investment but with higher returns. All things considered, you should look into these things before buying commercial property for investment.
Below we explore some of the best commercial property investments worth considering. However, all markets, across all 50 states are different, so you need to find a property that works for your city or state. Though you must also know what questions to ask when buying commercial property so we’ll get into that first.
The Most Important Things to Ask
Well, there are many questions to ask when buying commercially zoned property. So, this list should be considered a good place to start.
- Is the title clear?
- Does the property have insurable access?
- Are there environmental concerns?
- Is your proposed use allowed by current zoning laws?
- What’s majorly wrong with the building?
- Are there tenants?
Buying A Commercially Zoned Building is Excellent for Investment
A commercially zoned parcel is great for buying commercial property for investment. Out of all the commercial investment properties, it is also the most heavily capital dependent. Plus, has the potential for both long-term and short-term lucratively.
The buying a commercial building checklist should consist of the following considerations:
- Location: Is it near a densely populated area? How have the prices risen over the past decade ?
- Age: The age of a commercial building matters. Older buildings require more maintenance, and so you need to factor that into your profitability.
- Price: What’s your price to potential profit ratio? Will you need to lease the building? How will you pay for it?
Office Buildings and Suites
Unlike a restaurant space for lease, buying an office building or space can range from a single building to an office suite. Office buildings are a great piece of retail property because during a booming economy you’ll benefit from high rents. Plus, you stand to make a lot of money even if you just hold on to them for a while.
Of all types of retail real estate office buildings is the most economically dependent. So, you can lose as much money as you stand to make.
Buying Commercial Property for Investment – Entering into a Multifamily Deal
Let’s face it many established and valuable pieces of property are multifamily owned. You’ll have to come up with a multifamily deal especially when in the market for an apartment block or building. It will require thorough multifamily due diligence in addition to a property research checklist (above) something which the list below should help with:
Your multifamily due diligence checklist should consist of:
- Inspect each apartment individually
- Schedule mechanical checks for the entire block
- Get the property market report for the area
- Photograph all assets linked to the property
- Make sure utility bills are clear across all apartments
Whether you buy a commercial building, office suite, factory or some other asset, it all depends on where you are located. Our property research checklist should help you identify the right property in your area.