Before You Buy A commercial Property: Five(5) things you must check before estimating your Return On Investment.

[maventiger]

@Jonaville Thanks for the comment passed. That is the more reason @Alexander review threads to ensure we share information that will help the bizdustry community learn. Also, to make informed decisions when you find yourself in such position.

 

[Trexxxy]

I agree with what you listed, I think it is important you get a return on your investment, minus the cost of whatever it takes you to get the property running. I don't quite understand what you mean by "vacancy rate"

 

[Goodday]

Before buying any commercial property with the aim making high return on investment.
Five (5) things I check to determine if my investment will yield more than the estimated profit are;

1) Gross Rent Per Year
2) General Vacancy Rate
3) Annual Rent Growth
4) Expenses Per Sq/Room/Yr
5) Annual Expense growth

What do you check before buying a commercial property?

These are basically the factors we need to always check before buying a commercial property with the view of making high returns. I too check another minor factor which is the reason for the sale of such commercial property.

 

[EMMANUEL]

Be as flexible as possible
When viewing commercial property, it is important to look for premises that is flexible. It is inevitable that your business will expand and change whilst you are occupying the property, so it is crucial to find premises that can be modified over the years to suit your business. However, this may be restricted depending on the type of commercial property. Before leasing or purchasing commercial property, read through the property deeds to find out whether there are any restrictions to changes in the property. In some instances, you may be unable to change the use class, and in other cases, it may only be temporary.
Don't forget to budget
It is a fact that buying commercial property for your business is rarely cheap. When budgeting, you must factor in any new furniture your new premises will need, as well as long-term upkeep and ongoing costs which will inevitably incur. Having some extra money in the bank can help to avoid any problems you may encounter along the way.

 

[Kamon c4]

Estimating the gross rent per year on Commercial properties depends solely on the location and the economic situation of the particular area. This will help you forecast how long it’ll take to start realizing profits from the property.

 

[Ridorz]

You have said all the factors to be considered in buying a property. Property is not a what one can just buy without think twice, you have to estimate amount to spend on a property and estimate with prediction of what can be a profits within a year.

 

[Osaz96]

Nice suggestions, before I buy a commercial property I will consider the location of the property and how that can affect the property positively. I will also look the strength of the building do see if it can stand the test of time

 

[maventiger]

These are basically the factors we need to always check before buying a commercial property with the view of making high returns. I too check another minor factor which is the reason for the sale of such commercial property.

Actually what you called minor factor is a major factor to other investors. Some with that may re adjust their offer letter for a lesser offer. When an interested party have a hint through such questions that the sale is a DISTRESS STRESS, they sees it as an opportunity to try offer less amount and negotiate up.

 

[Emma Aneni]

Great points you’ve written. As for me, The first thing that I will evaluate is the location and its accessibility of the property. One should check the effectiveness of the property should also check if it’s from a reliable source and it’s not a scam as well.

 

[Afrinish]

Before buying any commercial property with the aim making high return on investment.
Five (5) things I check to determine if my investment will yield more than the estimated profit are;

1) Gross Rent Per Year
2) General Vacancy Rate
3) Annual Rent Growth
4) Expenses Per Sq/Room/Yr
5) Annual Expense growth

 

[Rimsha kanwal]

That's true, one need to examine e all this factor before going on estimating your possible business returns. Let's make sure that we analyse every expenditures about our potential business, before starting a business properly.

Commercial real estate is at the top of many investors’ wish lists, and for good reason: it has proven to be a lucrative endeavor time and time again. However, if you are buying commercial property, it is important to understand that increased reward can also mean increased responsibility. That’s why it is crucial to mind your due diligence and follow sound practices.

Post automatically merged: Jan 18, 2021

That's true, one need to examine e all this factor before going on estimating your possible business returns. Let's make sure that we analyse every expenditures about our potential business, before starting a business properly.

Commercial real estate is at the top of many investors’ wish lists, and for good reason: it has proven to be a lucrative endeavor time and time again. However, if you are buying commercial property, it is important to understand that increased reward can also mean increased responsibility. That’s why it is crucial to mind your due diligence and follow sound practices.

 

[Sincerem]

Commercial real estate is at the top of many investors’ wish lists, and for good reason: it has proven to be a lucrative endeavor time and time again. However, if you are buying commercial property, it is important to understand that increased reward can also mean increased responsibility. That’s why it is crucial to mind your due diligence and follow sound practices.

Post automatically merged: Jan 18, 2021

Commercial real estate is at the top of many investors’ wish lists, and for good reason: it has proven to be a lucrative endeavor time and time again. However, if you are buying commercial property, it is important to understand that increased reward can also mean increased responsibility. That’s why it is crucial to mind your due diligence and follow sound practices.

That's true, we should consider what we can afford to acquire, lucrative things always comes with expenses. If well planned for, unending profit comes by. That is the kind of investment that is worth.

 

[Goodday]

Actually what you called minor factor is a major factor to other investors. Some with that may re adjust their offer letter for a lesser offer. When an interested party have a hint through such questions that the sale is a DISTRESS STRESS, they sees it as an opportunity to try offer less amount and negotiate up.

I never thought my so called minor factor l do consider most at times when buying properties could be valued that much by other investors. Anyways, thanks for making me understand my decision better because I thought it was just never knowing it was the best.

 

[giddy]

Essentially, something that is overpriced won’t sell – but that can also be an opportunity. If there have been no offers and a property has been on the market for a couple of months, it is worth making a lower offer. There is no need to make an insulting offer, but with a justified figure you may get lucky!

 

[Akinwale701]

Before buying any commercial property with the aim making high return on investment.
Five (5) things I check to determine if my investment will yield more than the estimated profit are;

1) Gross Rent Per Year
2) General Vacancy Rate
3) Annual Rent Growth
4) Expenses Per Sq/Room/Yr
5) Annual Expense growth

What do you check before buying a commercial property?

Thank you very much for the lectures out there. I just added to my store of knowledge as far as real estate is concerned. And I hope I will be able to give this lucrative business a trial when I am capable financially enough to go into it. thank you once again, OP.

 

[Ralphjoe]

Before buying commercial properties I look out for several factors and some of the factors that out look out for are;
1. Development indices of the location.
2. The real valuation of the property.
3. The amount of rent per year.
4. Size of the property.
5. Proximity to other commercial properties.

 

[Sanusi]

Yes you are very right i also check that because the main reason of starting a business is to make profit, so there some things that are put into consideration is gross rent per year,annual rent growth and so on, once those things are seriously put into consideration then the earning comes in.

 

[Akinwale701]

Before buying any commercial property with the aim making high return on investment.
Five (5) things I check to determine if my investment will yield more than the estimated profit are;

1) Gross Rent Per Year
2) General Vacancy Rate
3) Annual Rent Growth
4) Expenses Per Sq/Room/Yr
5) Annual Expense growth

What do you check before buying a commercial property?

your analysis above there are quite good,I am sure there are quite a number of reasons to consider before venturing into buying of properties but our people of nowadays only buy without thinking of the appropriate things that follow. one has to consider maintenance as well before choosing to buy any properties

 

[Ayoknl]

Checking the documents presented by the selling party for authenticity I important as well we other legal documents for future purpose. Note that all the charges that go along with the acquisition of these documents be considered whole computing the return on investment

 

[zahidhussain]

Before buying any commercial property with the aim making high return on investment.
Five (5) things I check to determine if my investment will yield more than the estimated profit are;

1) Gross Rent Per Year
2) General Vacancy Rate
3) Annual Rent Growth
4) Expenses Per Sq/Room/Yr
5) Annual Expense growth

What do you check before buying a commercial property?

Before buying any commercial property with the aim making high return on investment.
Five (5) things I check to determine if my investment will yield more than the estimated profit are;

1) Gross Rent Per Year
2) General Vacancy Rate
3) Annual Rent Growth
4) Expenses Per Sq/Room/Yr
5) Annual Expense growth

What do you check before buying a commercial property?

Before buying a commercial property you must knowledge about these factors you must have information and full knowledge about annual expense growth.Secondly you also have best general vacancy rat.And you have the advance planning about chomerical property dealing and more information about it