When you’re looking into expanding your portfolio with commercial real estate, there are some things you can do to make sure you’re making the right purchase. With many commercial purchases, location, overall value and size are important.
Each one of those factors could play a role in your success in renting out the facility or in how much the property will increase in value over time. For example, if you are trying to rent a commercial property to businesses for retail purposes, it’s key to be in an area with high foot traffic if you want to draw in name brand or large businesses that plan to stay for long periods of time. Additionally, having a commercial property in a popular shopping area can increase its value and increase the amount you can seek for monthly rent.
Size is another consideration. Larger commercial properties give you a few options. You can split them into smaller business units, or your can create one large business for major retailers or other companies.
Depending on your preference, you could divide a property into office spaces, for example, and actually earn more per month based on individual rents rather than one rent for one company. This also limits the risk of all income disappearing at once if a business leaves or goes bankrupt while renting.
These are some things to think about if you’re buying a commercial property. Sit down and think about how you want to use the property so you can make the right decision on the type of property you purchase.