TOP FACTORS TO EXAMINE BEFORE INVESTING IN A COMMERCIAL PROPERTY
- By Admin
- Dec 09, 2019
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Commercial property refers to properties that are widely used for business purposes like offices, hospitals, shopping malls, schools, warehouses, and business centres. If you are planning to invest in any of these commercial properties, then you need to take certain factors then help to have a higher return on investment in the future.
Scope of Commercial Properties Investment
If approached properly, there are several advantages in commercial properties. Some of them are listed below.
High Rents: This might look vague, but commercial property owners can charge higher compared to residential owners. This is because commercial properties are located in the central parts of the city and require larger sq.ft. Added on to it, commercial tenants are money makers so they can afford to pay high rents.
Diligent Tenants: Commercial tenants and business people have a sincere interest in maintaining the space. The outlook plays a vital role in for positive customer interaction, so commercial business takes effort to maintain the place outlook and improvements in the rental place.
Long Term Lease: Residential leases last for at least six months to one year but a commercial lease typically takes two to five years, in certain cases, the lease may take place for more than ten years. The longer the lease term the longer term of income. On the other hand, most leases are set up as triple net (NNN), which ensures that the tenant is responsible for a proportionate share of insurance, taxes and general maintenance of the rental property which would prevent the landlord from the uncontrollable cost that affects the ROI.
Factors to Consider in Commercial Property Investment :
When it comes to real estate investment, it is advisable to keep certain factors in mind, which can result in a higher return on investment and problem-free income in the future. Below we have listed some of the important factors to note down before investing in a commercial property.
Property Location: Location plays a vital role in commercial property investment. If you are looking for a better return on investment from a commercial property, then it is very important to focus on which location you are going to invest. Look for a fast-growing and higher scope for rental income. Also, note the rate of real estate investment in that location and check whether it is suitable for commercial leasing.
Scope of Marketability: If you are expecting a standard and vigorous investment from your commercial property, then location alone is not enough. The building property must be capable of attracting tenants all through the lease agreement. It is essential that the building offers the latest technologies and high-level infrastructure. This will help to maintain the quality of your property.
Amenities and Services: Amenities and services are one of the important factors to keep in mind. Look for amenities like cafeteria, spacious car parking, power backup, 24/7 water supply, and internet services. These are the basic amenities that make your investment valuable with a higher income rate. If you are looking forward to branching out your investment in property, then commercial property real estate is the best choice. Seek out for the best property sellers like MyPropertyBoutique, one of the very few trusted sellers in India. Check our superior commercial projects in high-class areas.
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