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Mistakes easy to make when offering commercial leases

| Jan 18, 2018 | Commercial Leases

Purchasing and managing real estate properties in Los Angeles is a lot of work. It can be rewarding if a property that an investor owns offers revenue-generating commercial leases. But the process can still be overwhelming. A few tips may help real estate investors to avoid making common mistakes when making their investments.

First, looking at a potential property’s replacement costs, projected growth and rental rates is important. Considering the other area properties that will compete with the potential one is also a wise move. A competitor may prevent an aspiring investor from obtaining the rent levels he or she needs to make a potential property profitable long term.

Another noteworthy consideration is whether to hire a property manager to handle the administrative aspect of owning a property and having tenants. In many cases, hiring such managers makes fiscal sense. Qualified managers can help with leasing, looking for tenants, collecting rents and even handling evictions as needed. Still, investors will lose a percentage of their profits for these services.

Finding real estate properties that offer commercial leases and have major potential can be a major challenge for investors today. This is partly due to the fact that high prices for properties are driving many buyers to purchase new property types or to search for real estate in secondary markets. Trying to navigate the legal aspects of a purchase on top of the financial aspects can understandably be confusing. Fortunately, an attorney in Los Angeles can provide the guidance needed to ensure that an investor’s goals are pursued successfully in the Golden State.

Source:, “Avoid These Four Common Commercial Real Estate Investing Mistakes“, Michael Episcope, Jan. 5, 2018