Top 5 Tips for Commercial Real Estate

Investment

Commercial Properties occupy the top spot in the list of profitable investments owing
to the profits generated from leasing the property for business purposes. Commercial
properties also provide the investors with huge scope for investments as they offer a
plethora of investment options like office spaces, warehouses, retail spaces, and
many more.

Commercial property investment is luring and can take a toll if proper attention is not
paid during the investment and property maintenance period. Here we present you
with the tips to ease your investment process and help you enjoy the returns.

Acquaint with the Metrics

Real Estate Metrics are performance indicators that tell you about your investment
behavior over a period of time. The metrics let you know if the property that you want
to invest in reaps profits or losses. To mention a few, Cap Rate, Net Operating
Income, Return On Investment are widely used by investors and developers to
evaluate the performance of the property.

The metrics not only help you during the purchase process but also give information
about the asset performance during the holding process. If you understand through
the metrics’ figures that you own a property that is producing losses, you can sell it
and earn back your investment before incurring heavy losses.

Study the Market Trends

Commercial Properties are dynamic investments owing to the changing needs,

expectations, and nature of the businesses. Smart buildings with automated
elevators and IoT technology work to achieve sustainable development thereby
reducing energy bills and escalating the life of the infrastructure. These properties
are trending as they save some money for the tenants and the property owners are
benefitted from the long term leases which reduce the vacancy losses. Therefore,
studying the market trends and upgrading yourself helps you bag the attractive deals
available in the market.

Choose the Investment Location wisely

Commercial properties by definition mean the assets that can be used for business
purposes. So, the location plays a prominent role in attracting tenants and returns.
The place of investment gets a fair share of power in deciding the capital
appreciation. Hence, a property that is strategically located, i.e., the asset in the
prime markets and has accessibility to the other parts of the city always experiences
the demand rush.

Know the various Investment opportunities

Real Estate has seen a drastic change in the types of property investments provided
for the investors. Trending investment options like condos, co-living, student housing
have received a huge response from investors and developers.

Novel approaches to commercial investments like fractional ownership are steering

the industry towards increased accessibility to investors with small ticket sizes. A
broad range of investment options is available at a cheap and cheerful price. The
asset class investments like warehouses and data centers are available for you with
as low investment as Rs.5 Lakhs through fractional ownership. There are many
online investment platforms like Assetmonk that offer investors the option of
fractional ownership. Knowing the trending investment opportunities helps you save
resources both time and money.

Anticipate the Repairs and Maintenance costs

Commercial Properties come with a sack of responsibilities. You have to check the
properties regularly and address the maintenance and repairs instantly. It stands on
your part to protect the property from wear and tear and spruce it up frequently. All
this comes with an attached bill. You don’t have to panic if you have a sum set aside
for contingencies like repairs and maintenance. The concerns related to
maintenance and repairs if addressed at the earliest add up to your tenants’ factors
of evaluation to lengthen the leasing agreement.

Bottom Line

To put in a simple phrase, the chief motive of commercial property investment is to

earn lucrative returns. Hence, it always advised mastering the trends in the markets
to make an informed decision. Also, the location forms the scholarly crux as the
property’s worth escalates based on the location and this, in turn, increases the
returns. Commercial Properties also incur heavy maintenance and repair costs
owing to the infrastructure requirements for the business. It is therefore prescribed to
maintain a fund that could be used under these circumstances. These are some of
the tips to follow that help you smoothen your investment journey!
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estate investing platform that presents you with highly curated assets that undergo
thorough due diligence. A broad range of assets, from residential to condos, with
high expected yields of IRR of up to 21% are available on our platform.