If you are a first time commercial property investor, there are various things you need to keep in mind before you plunge into the investment. Commercial properties generally have plenty of advantages. For example, they will offer you higher yields than the residential properties. However, such yield will be based on various other factors such as the infrastructure, new developments in the area as well as rezoning. To help make sense of the market, you need professional property brokerage services such as commercial property Prestons with LJ Hooker offers for commercial space investors.
A commercial space that is in close proximity to an attractive neighborhood such as one with numerous densely populated condos and flats is likely going to fetch a top price and good yields than one that is situated in a more depressed and less populated area.
For most investors, however, commercial spaces always seem like a sure bet. With brokerage services such as commercial property Prestons with LJ Hooker, they could just be. Here are some of the points to keep in mind before you plunge your head into the commercial real estate market:
Know the types of commercial properties available in the market
Before you throw your money into the marketplace, you need to determine the types of commercial properties that you want. For example, are you looking for office buildings or shopping malls? Are you looking for something in the industrial sector such as a warehouse or even a factory floor space? Make sure that the kind of property that you will choose is a healthy investment that can assure you of excellent yields. Healthy property simply means that it has very good potential to be attractive to many clients and is thus likely to be rented with healthy occupancy rates that will assure you of optimal returns.
Look at the tenure
Some properties are generally leasehold while others are freehold. Leasehold commercial properties are likely to be cheaper. However, if you are sure that the rental income from the property is sufficient to cover your mortgages, then you shouldn’t worry too much about the property tenure.