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What To Consider When Investing In Commercial Property

What To Consider When Investing In Commercial Property

If you have money to invest in something, many experts would suggest property, and as a business owner, this can certainly be a wise move. Although it’s true that the property market can be subject to ups and downs, the reality is that your investment will generally be worth more when you come to sell it than when you bought it. Add to this the fact that you can use it to make money through rentals while you’re waiting to gain more equity, and you’ll see that it’s preferable to many other types of investment. 

Of course, investing in anything is always something of a risk, and it’s important to know the pros and cons of anything you might spend money on. When it comes to commercial property, for example, there are a number of things you’ll need to consider, so keep reading to find out what some of them are. 

Photo by Jimmy Chan


When it comes to investing in commercial property, location plays an important role. Remember, it’s not just about the property itself but about the surrounding areas as well – there’s no point in investing in a property, even if it’s a great bargain (or seems to be), if no one wants to rent an office or warehouse space in that location. 

Look for areas that have a high demand for commercial spaces and that are ideally growing as well, making them more popular and attractive places to work. Think about how easy it is to get to the building (is there nearby public transport, for example, and are the road networks useful ones?), and really do your homework because a good location can be the most important thing of all, and it can’t be changed once you’ve bought the property. 

Potential For Future Growth

When you invest in property, you need to think about the long term. After all, property investing is all about waiting for years, and maybe decades, to make the most money on your investment, so you should be prepared for this anyway. However, you also need to think about the potential for growth, and this can link with the point we made above about location. 

Are there any new projects being built in locations that are up and coming? If so, these might be the buildings to focus on, and invest in at an early stage so you can make the most of the advantages people would get from it. You can also think about the building itself – could you make more of it than you already do? Perhaps by adding an extension to give more office space or building an outside area for people to relax in, or even looking into commercial facade restoration to make the building a lot more attractive, you could make more money or ensure the rooms aren’t empty for too long between tenants. 

Financial Feasibility 

Before sealing the deal, don’t forget to go through all the figures to make sure the numbers are going to add up for you. If you bought a property on the assumption you could charge a certain amount for rent, but it turned out you made an error, you could lose a lot of money, and it might even be difficult to sell the building and recoup your losses. 

Make sure you know the average rent of the other commercial buildings in the area, and know precisely what you’re going to be paying for not just during the initial purchase, but any ongoing costs – such as maintenance – as well. When you have all the figures, you’ll know if it’s a worthwhile deal or not.

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