Tips for researching commercial ?

[Giulio Taranto]

Ok so location is very important in any type of real estate, but when it comes to commercial what are the most important things to look for?

Also when you lot look at commercial property do you look at specific types? Personally i have a preference for retail types of places but thats only because its what im familiar with.
I haven't done all that much looking around just yet as all my time is tied up atm building a unit, but with the extra equity i was thinking about getting into the commercial side of things.

I guess what im asking is how do i go about setting up a criteria when looking at commercial property?

What are the most important things that you guys factor in when looking at your potential commercial investment?

 

[CairnsAgent]

R.O.I..thats my main criteria.
Other considerations :
Location, lettability, future growth, future development potential, zoning, surrounding business'.
However for me with commercial it's all a numbers game...like all investing. If the figures are right for me, it's not so important if some of the other factors are less than perfect. If a property has good return, in a great location with future potential as well....there will be 1000 people trying to buy it! Then the return suffers.
You have to look at what you want from the property..return over growth, vice versa maybe you would sacrifice return for a long term sustainable tennant..only you can determine what is quite right for you.

Cheers

 

[master01]

If you are thinking about purchasing commercial real estate, it’s important to know that there are things that you can do to enhance and increase the value of your investment. As such, when you search for a commercial property, look at the property’s potential in addition to its historical data. Because the value of commercial real estate is primarily driven by the cash flow that the property generates, any strategy you employ has the potential to increase your cash flow, decrease your expenses, and increase your overall equity and the value of the property.