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Don’t Make These Shocking Commercial Real Estate Blunders

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You may have heard that investing in commercial real estate is where are the really big bucks are. And it’s not like whoever told you that is a liar! The commercial real estate investment game can be extremely lucrative. After all, you could be dealing with people who have a lot of money, here!

But it’s not exactly as easy as people make it out to be. And if you want to increase your chances of coming out of this financially healthy? Then you need to make sure you’re doing it properly. A lot of people get into this after finding success in residential real estate. They assume it’s going to be very similar. But this isn’t the case!

Read ahead, and avoid these blunders at all costs! Go about this right and you can certainly make a lot of money, but do it wrong and you could be in a heck of a mess.

Assuming all potential clients will be millionaires

A commercial real estate will be leased to businesses. And when people hear the word “business”, they often picture a lot of dollar signs. You may assume that the company you’ll be dealing with will have millions or even billions of dollars! This can lead to you demanding too high a rent price. Don’t do that.

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Thinking these properties will sell themselves

There are new businesses every day, and a lot of them want office space. But you’ve got to remember that more people than ever are working from home, or even using communal work areas. You have more competition than you used to! Make sure you’re marketing your property properly. New businesses may not just stumble upon them.

Not considering the average office needs

So what kind of terms do you want to set down for your tenants? Modern businesses are going to want quite a lot of leeway when it comes to modification. They may have very specific electrical needs. They may want to alter the office design, maybe even paint some murals on the walls. If you tell businesses that they’re very limited in what they can do with the space, they’re going to be put right off.

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Letting yourself get a hard bargain with the lease

Commercial leasing can be much more complicated than residential leasing. And residential leasing is hardly the simplest thing in the world! You’ve got to be careful with the contract you create for the tenant. Some types will see you shoulder many costs you may not be willing to deal with. One of the most popular and balanced types of lease is known as the triple net lease. Triple net properties might be the way to go for your business venture.

Forgetting about the other businesses in the area

If you’re looking to get a certain type of business to occupy this property, then you need to consider the other businesses in the area. What if there’s a competitor in the area that will turn off the potential tenants you’re after? This is one of the reasons why you shouldn’t be too strict with the type of businesses you want to work with.

 

 

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One Response to “Don’t Make These Shocking Commercial Real Estate Blunders”

  1. […] change that requires an awkward relocation. It could be that you need the money that’s tied up in the property in your hand as soon as possible. Whatever the reason, you need to sell your home as fast as you […]

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