Commercial real estate is almost the forgotten brother of the real estate game. It’s that one member of the band that everyone forgets about. It’s the little bit of salad you get on your plate that gets ignored every time.
Most people concern themselves with residential real estate as they think that’s where all the money is. But, can you make money from commercial real estate as well?
The answer to that question is a big fat resounding yes, you can. Of course, you can make money from commercial real estate, you may even be able to make more money than compared to residential. So, how do you do it? Below, you’ll find my best tips for investing in commercial real estate:
Find The Prime Locations
Much like with residential real estate, commercial real estate works best when you’re investing in the prime locations. Most real estate investing companies will have a list of buildings up for sale in areas that are perfect for you. We’re talking about areas that are right in the middle of a business district or a building that’s in a popular retail park. These are the prime locations you should be looking at; places where a lot of business goes down. The reason for this is that it will be easier to find tenants for retail space that’s in a location that gets a lot of foot traffic.
Modernize The Building
A really easy way to attract businesses and get them paying more rent is to supply them with a modern building. If a company knows they’re moving into an office that can get really high internet speeds and comes with a state-of-the-art security system, they’ll pay top dollar. No one wants to rent an office or retail space that looks run down and is a little bit outdated. If you invest a little bit more money into modernizing the building, you will make your investment seem more desirable to others.
Seek The Best Tenants
As you can tell, leasing your commercial building is the main way of making money. In fact, it’s the best and most practical way. But, it all revolves around the idea that you have tenants. The key is finding the best businesses for your building. Hopefully, if you invest in something that’s in a prime location, and you improve the building, you’ll have loads of companies queuing up wanting to rent it. What you’re looking for is a business that’s built to last, a company that will stay there for years and years. If you give the keys to a business that seems unstable, they might leave within a year. Then, you have to try and find a new tenant, then the new business has to get the space ready for them, and it wastes a lot of time. All this wasted time is time that you’re not receiving rent payments. With a business that stays there for the long-term, you know you’re always getting paid every month for many years.
With these tips, you can start making money from commercial real estate investments. Give it a go if you want a change from the usual residential ideas.