Tips for Commercial Investment


Buying a commercial property is a very important decision for everyone. Being a buyer, you want to ensure that you are investing in the right venture. Hence, to make the task slightly easier for you, here are some important tips on investing in the right commercial property.


Commercial Investment


Review the Location

Location of a property plays the most important role in deciding its price, and future of your venture. A Commercial Property provide with returns through two avenues – rental income and capital appreciation. Before you invest, ensure that the location you have chosen has a good catchment of residential projects, as the success of a commercial project in any location depends on the residents in the location. Apart from having good social infrastructure and easily commutable via public transport, the locations where vacancy is less than 5% will ensure that the tenants are less likely to vacate, which will eventually lead to higher rents and capital appreciation. A high vacancy location gives tenants the options to move and renegotiate rentals.


Parameters of Quality

Two developments may be in the same location, but the one boasting better quality will always get occupied first. Also, the better quality of the property will also attract better quality of tenants. Needless to say, it will get the investor higher rents, better retention of tenants and higher appreciation. You can look for certifications like LEED gold or platinum ratings or buildings that have a large frontage, higher ceiling heights, more elevators, electricity back-up, parking facilities and better views. The properties with quality higher than the average are also more liquid and can be sold much faster. 


Choose the Right Developer or Consultant

Another important part of choosing a property is choosing the right developer. It is essential that you, as a buyer, can trust the developer you are buying the commercial property from or, just save yourself from the hassle by connecting to a trusted consultant. There are several benefits of hiring a consultant, because they can help you with their market research, in comparison to an individual, a consultant is more informed about the reputation and trustworthiness of a particular builder or project. Getting an expert’s advice will guide you as to which property would be suitable for you to invest in considering your expectations from your investment and hiring a consultant is also a win-win game for the fact that you get ample of options suiting your requirements, while it’s only you who possess the authority to make a final decision. Therefore, it is important for you to be well-acquainted about the commercial property, while an expert will help you choosing the right property.



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