Commercial property can make a great investment and includes a range of different property types. Some properties might be stores or office spaces, while others could lean slightly more towards the industrial side of business. If you’re interested in investing in commercial property, you might be unsure about where to start. Should you invest in property that’s suitable for a particular industry? Are there any locations where you can find smarter investments than elsewhere? Or maybe you even want to know if it’s worth developing your own commercial property. You have a variety of options to consider before you decide which commercial property to make your first investment, or even whether it’s a good choice for you at all.
Retail Spaces
If you’re considering investing in commercial property, retail spaces are often the most sensible choice. You can buy them in single units, which can be difficult to do with offices, and they can offer great opportunities for return on your investment in the right area. Some people might worry about investing in retail property due to many businesses moving online. It’s true that brick-and-mortar stores can struggle, particularly if they’re not in a very good location. You should be careful about choosing tenants to ensure that your space hosts a business that works for the area. There are also ways to avoid having an empty store. Some commercial property owners offer their retail space to businesses who want to run pop-up locations to promote their brand. This can keep your space occupied when you don’t have long-term tenants.
Office Space
Offices are another option to consider if you want to start investing in commercial property. However, they can sometimes be difficult to start investing in because they often come in multiple units. It’s more difficult to buy a single office than it is to buy a single retail space. However, there can be opportunities to buy single units and perhaps you’re willing to invest in multiple properties too. There are often new office blocks developed in cities, whether they’re converted from existing buildings or developed from scratch. Even though more businesses are operating remotely and using the internet, plenty of them still need premium office space.
Investing in a Specific Industry
When you’re considering investing in commercial property, it’s worth considering whether you could target a specific industry. There could be an up-and-coming industry that’s worth looking at, which might influence your choice of investment. Some commercial property owners might be reluctant to lease their property to certain types of business. However, if you are willing to be open to these businesses, it could give you an edge when it comes to finding tenants. As the industry grows, cannabis real estate is becoming one of these specialised areas that you might want to consider. Many investors might not want tenants running a cannabis or hemp business, but others have no problem with it. You could consider what facilities such a business might need when you’re looking for an investment property. You can also consider more traditional businesses that have specific needs, such as hotels.
Considering Industrial Spaces
A third option that you shouldn’t rule out is industrial spaces. These include property such as warehouses and industrial estates. They’re likely to be spaces that don’t need to look as smart as an office or a store. They need to provide a place for things to be made, stored or moved around, so it’s more important that they’re practical than pretty. Unlike retail spaces or offices, an industrial property is unlikely to be in a central location. They’re more likely to be on the outskirts of a city or even further out. The best locations for them are often places where they offer an edge for logistics. Many businesses need industrial space in addition to retail and office space. It’s worth looking at different sizes of industrial property to see what’s in demand.
Mixed-used Spaces
Finally, you should think about mixed-use property and decide whether it could be a worthwhile investment for you. A mixed-use property can be used for different purposes, with a mix of residential, commercial and industrial property. It could range from a storefront with a home above it to a larger development that offers both homes and business spaces. This kind of space can even be created as a community for business owners who might want to live and work in the same place. Managing a mixed-use property could be more complicated, especially with residential tenants involved, but it’s an interesting option to consider.
How to Find the Ideal Location
When you’re choosing commercial property, you need to make sure you look in the right place. You can find commercial property in many different areas but deciding where to buy isn’t necessarily easy. First, you need to consider what sort of property you’re interested in investing in. If you want to buy retail space, you might immediately think that it’s wise to buy property on a busy street in the centre of a town or city. However, there could be other opportunities worth considering too. A commercial space in a small town might not look like much, but the right tenant could give the town something it has been crying out for. Offices are often central too, but not all businesses can afford or want to have office space in a central location. For industrial space, consider logistics and which areas are most desired by businesses for optimum delivery times.
Commercial Property Development
Some investors might also consider developing commercial property. However, this option is unlikely to be something you think about if you have never invested in commercial property before. You need to have significant funds if you want to develop commercial property, whether you convert or refurbish an existing property or build a new one. Commercial property development can be a great investment, but it’s not something you can jump into straight away.
Before you invest in a commercial property, you should think about your options and how to choose the best investment. Don’t forget to explore the different ways to invest too.
