How to Choose the Right Commercial Investment Property



Investing in commercial property is a major decision that consists of crucial elements, including: your leasing strategy and the type of property you invest in. Not to mention, land developments and building improvements. Taking all of these elements into considerationwill help your investment grow. Before purchasing commercial property, you must weigh the pros and cons against your investment strategy. This will ensure you choose the right property for your portfolio. 
Create a Good Leasing Strategy
Your leasing strategy is a major component of investing in commercial property, whether you’reinvesting for rental income or capital growth. A good strategy is tantamount to excellent asset performance. It should leave room for maintenance provisions and rental reviews. This will help you remain competitive and ensure all improvements are up to code.
When reviewing the lease, consider whether the asset offers opportunities for depreciation, if it will impact overall asset performance and if you own the fit-out. For more understanding of your lease and the terms, you should also invest in good commercial property management. Managers like Group Three Property Management will create a great leasing strategy for and ensure you are aware of and understand the major components of your lease(s). 
Investing for Rental Income
If rental income and cash flow are your ultimate investment goals, then you should invest in higher yield properties. High yield properties are generally those above an 8% rental yield. Yields at this rate allow you to generate a sizable rental income, pay for your mortgage and other expenses and profit from your investment. However, the best commercial property management companies in Edmonton will tell you that high yields aren’t the key to finding the best investments. In fact, capital growth is the most important reason to invest in rental property. 
Investing for Capital Growth
Not all commercial property types lead to good asset capital growth. For optimal capital growth, you should invest in certain types of commercial property – like high-quality retail space. However, the location of the space matters as much as the space itself. In fact, the location and position of the property should be a major consideration for investment. Since location determines the supply and demand for land, it also determines the value of your land and property. Capital growth occurs when the value of that land increases. However, the value of your land won’t increase if the property isn’t in a good location. Just be sure to invest in real estate that matches your portfolio.

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