When you would like to invest in commercial real estate, it makes sense to purchase buildings that are easy to rent out and to keep maintained. It helps if you’re able to purchase a solid building to begin with, so you can keep up with minor maintenance and make your tenants comfortable.
Not all commercial real estate is a good buy. In fact, many of the commercial properties on the market may not be right for you. Certain real estate will be a better target for you, but you need to know what to look for.
What should you look for in a good commercial property?
A good piece of commercial real estate will be suitable for what you want to do with it. For example, if you planned to rent out space to residential tenants, you may want to buy apartment buildings or condos. If you would rather rent space to businesses, then there may be mall spaces or large office buildings that you want to look at instead.
When you invest in commercial properties, you may want to balance your investment with something that has an excellent return on investment without much maintenance work. For instance, if you invest in storage units, you won’t have to worry about live-in tenants damaging the property.
Instead, you may need to hire 24-hour security to monitor the facility, but in general, it’s a hands-off way to bring in money with little risk of needing to do repairs. If you don’t have a heated/temperature-controlled unit, then it’s more like maintaining garages than buildings, which makes things even easier.
Avoid high-risk properties to protect yourself
There are some higher risk properties that you may not want to invest in, too. Single-tenant buildings are among them. So, if you want to hedge your bets, the better idea is to invest in a property that you can lease to multiple people or businesses at the same time. That way, if one leaves, you will still have others paying. You will then have time to bring in another business or tenant, so you can boost your incoming profits once again.