Buying commercial space: advantages and disadvantages of various objects
Investing in the real estate market has always been a profitable option for investment and income generation. Recently more and more people are interested in buying commercial premises. It requires substantial expenses, but the income in this segment of the market is much higher than in residential.
Transactions with office and commercial real estate have their own peculiarities. Most investors prefer to invest amounts of 100-200 thousand dollars. But there is not always such money on hand, an alternative may be the sale of existing real estate or a loan in a bank.
This amount of money allows you to buy a small warehouse area, office or retail space. Garages and land plots do not give high profits, and their purchase is inexpedient.
Warehouse space of small size can not always be rented out for its intended purpose, due to the need to comply with special conditions. The object must be guarded and heated, and have communication systems. Most often the premises for warehouses are converted from old factory buildings, but such objects have a large area. Small objects may become interesting if they are close to construction markets, where it will be convenient to store goods.
Much depends on the location of the facility. If it is successfully placed, you can convert it into a business, for example, tire service or car wash. But you should understand that this requires financial expenses, which do not always pay off.
When buying a warehouse space, it is necessary to study what audience of tenants may be interested in it and what income can be received from its delivery.
Office real estate is quite in demand. In most cases, premises are offered in business centers, or apartments are re-equipped. Purchase of real estate in the building is a profitable option for investment. Usually they are located in the central districts of the city, have a parking lot, and developed infrastructure nearby. Besides, companies, which rent premises here, often look for a new place in the same building when expanding or downsizing their employees, which means that the area is almost never empty. Buying commercial real estate of this type, you can count on a stable high income.
Street retail objects include premises for stores, which are located on the first floors or basements of residential buildings. They are rebuilt from ordinary apartments, and have all the necessary communications. Such premises are in demand among entrepreneurs; they are rented for opening stores, pharmacies, bank branches, and other businesses. Favorable location of real estate guarantees its demand, profit, and quick return on investment.
New buildings are a good option for investing in commercial real estate. The first floors of these buildings are originally reserved for non-residential premises. Buying such an object at the stage of excavation will save a significant amount of money, and in the process of construction to equip the area as you want, make a redevelopment.