Investing in commercial property is a high-stakes venture. An investment of this type puts a lot of money on the line, and even a small oversight can turn into a disaster.
Here are 10 signs that you’ve found a good investment property.
1. The Seller is Honest
The seller should be completely honest about the history of the property and the specifics of the deal. If you’re not familiar with negotiating commercial real estate transactions, then it can be difficult to know whether a seller is truthful, so it helps to have an experienced broker on your side.
2. It’s in a Great Area
Location is crucial when it comes to your investment property. Ideally, you want to find property in an area with low crime rates and a healthy job market. If you have an idea of the type of company to which you would like to rent make sure to buy a commercial building in a location that will be attractive to that business.
3. It’s Well Maintained
A well-maintained property shows that the owner thinks it has some real value. A neglected property can have hidden issues in addition to visual ones.
4. It has a History of Long-Term Leases
If you’re planning on renting a property, make sure you check out the previous history first. Long-term contracts are a good sign that the landlord is easy to work with and that the property was profitable for previous tenants.
5. Similar Properties have a History of Success
Do a little research and check out similar properties in the area. If they are thriving, then that’s a sign yours will too.
6. It’s Competitively Priced
Owners sometimes list their property at an unreasonably high price for negotiation purposes, and this means you will spend a lot of time going back and forth trying to hammer out a fair deal. If a property is priced to sell from the beginning that means the owner is ready to make a deal.
7. It Hasn’t been on the Market for too Long
Commercial real estate often sells pretty quickly. If a property you’re looking at has been on the market for quite a long time, it may be a sign that there’s something wrong with it or that the seller has listed it too high.
8. You Aren’t Compromising on Your Needs
Purchasing an investment property is a significant transaction, and it’s not wise to make major compromises when so much is at stake, so if you’ve found a property that fulfills all of your needs, then it’s probably worth pursuing further.
9. The Building is Relatively New
Newer buildings are more up to date with modern building codes and are less likely to need major repairs. Additionally, newly built properties are often in areas that are growing. A growing area is a great place to develop a business.
10. Your Broker says it’s a Good Buy
If your broker seems enthused about the property, you’ve probably found a winner. Take time to find an agent you trust to partner with, and then consider their advice. A great broker will want to see you succeed just as much as you do.
At Ullian Realty we utilize our 50 plus years of combined experience, specifically in the Brevard County Space Coast commercial / industrial real estate market to find you the perfect commercial / industrial property for your investment. Please contact us today to find out more about investing in commercial / industrial real estate.