Commercial real estate is defined as asset classes that are not single-family homes, such as multifamily, office, and retail. Purchasing commercial real estate can yield excellent results – even more so than residential properties. Now, how do you evaluate the best commercial properties to invest in? Below, we go over the 7 steps you should take to ensure that your investment will pay off now and in the future.
Establish Your Motivations for Investing in Commercial Real Estate
First, ask yourself why you want to invest in commercial property. This will help you narrow down sites and find the property that is best equipped for your goals. Do you want a multifamily building to rent out? Or are you looking for a property you can use for your own business? Whatever the answer is, it is key to first identify why you are investing.
Assess Your Investment Options
After establishing your motive, look at all the types of commercial properties and determine which is best suited for your needs. Common commercial property types include, but are not limited to:
Of course, a retail property is not suited for family living, so assess your options based on your long-term goals.
Watch the Real Estate Market
It is natural for the real estate market to ebb and flow. Prices will go up and down, and you can make the most of your investment by securing a commercial property when its price is at a low point. Start to monitor the market well before you’re ready to buy and pay careful attention to pricing trends. This way, you can position yourself to take advantage of a great value.
You should always have your financing lined up in advance of investing. That way, once you find a commercial property at a good price point, you can capitalize on it immediately. The first step here is to check your credit and make sure all the information contained in your reports is accurate. If that is the case, then look through the types of financing that you qualify for and compare interest rates, repayment terms, and other factors to find the best fit.
Partner With a Winning Team
Every commercial real estate process involves a lot of moving parts. Even the most experienced investors know to surround themselves with experts to make sure their investment has the best chance of success. Before you go shopping for properties, assemble your team. Some experts to consider working with include a commercial realtor, accountant, commercial real estate attorney, and a tax attorney.
Fight the Perfect Property
Commercial property shopping is the fun part! However, without taking the proper precautions of the previous steps, you may only be setting yourself up for failure. After establishing your motive, understanding your investment options, lining up financing, and assembling a team of experts, you should have every resource you need to make an educated and profitable investment. Your commercial real estate agent can help you locate the best properties in your market that suit your motivation.
Close the Deal
The perfect commercial property is waiting for you. Once you find it and want to purchase it, it’s time to make an offer. Here, your commercial real estate agent and commercial real estate attorney can help write up your offer so that you are covered in the event of any complications. For example, including a due diligence period with an escape hatch in case certain things like zoning issues or failed property inspections come up – otherwise known as a contingency clause.
Furthermore, navigating commercial real estate isn’t just about learning the area or negotiating a great price. It’s also about building relationships and networking with property owners. Southeast Volusia is precisely the region where you want to be to find incredible opportunities for commercial real estate in Florida. Contact the Southeast Volusia Manufacturing and Technology Coalition today and ask about our available commercial sites.