If you’re interested in commercial property management or buying commercial real estate for your own use, it helps to gather as many facts and tips as you can. This, like any other business venture, requires research and a realistic view of your assets and expectations. Use the tips below to help ensure that you get the most out of your commercial real estate investment.
- Use more than one source. Find a commercial real estate broker who has sound knowledge of the area you are looking. Search the Internet for great deals, and pay attention to the newspaper. Don’t just look at the classified ads either, but search for businesses that are relocating or otherwise providing an opening for a hot commercial real estate deal.
- Know the difference between residential and commercial real estate. Residential real estate prices are figured in a whole other way than commercial ones that rely mostly on square footage.
- Plan for positive net worth. At the end of the year, you should be gaining more than you’re spending. Sometimes it’s even possible to do this instead of just breaking even after the mortgage is paid. Your operating costs should never exceed the income level the property brings in.
- Turn to sellers with motivation. Motivated sellers are more likely to sell the property on your terms rather than trying to force terms on you that you have no interest in.
- Plan Ahead. What do you plan to do with the building? Determine the square footage and resources you need ahead of time so you don’t stretch yourself to thin with a poorly thought out plan.
- Have a keen eye. Square footage aside, it’s important to be able to spot areas that are going to impose indirect costs. No matter how good the deal is, major renovations can quickly turn the situation into a financial loss for you. That doesn’t mean you shouldn’t invest, but it does mean you need to calculate renovation costs into the overall price and address the issue with the owner.
- Listen to the Community. Don’t just take a look around. Actually get out and talk to people. The community offers a wealth of information that can help you determine when you’re in the right place for the business plans you have in mind.
When you’re ready to make an investment or learn more about commercial properties in South Carolina, contact Spencer/Hines or visit the Spencer/Hines website to learn more about commercial property investments in the area.