If you want to invest in the commercial real estate, you will have to do careful research and planning, and put in some forethought. Finding the right commercial property for sale will require you to take into consideration numerous factors, like the location, performance of the local job market, infrastructure initiatives in the pipeline, and migration patterns of the city.
While you can follow conventional commercial property investment guidelines if you want to invest, a prime commercial property is a different ball game altogether. You will have to do thorough research and study the local market before you invest in the property.
There are many benefits of investing in premium commercial properties. Some of them are as follows:
- It is easier to find and attract tenants if the property is located in a superior neighborhood. Finding tenants is the key to success, as your property yields will depend on it. When a commercial property is vacant for long periods of time, you will lose income, as there will be no yield in the form of rent.
- Banks are more flexible in providing loans for commercial properties located in prime locations as the chances of capital loss are minimal.
- Today, many businesses are focusing on employee retention and this gets an impetus when employees can travel to and from work with ease. Prime properties are often easily accessible by public and private transportation.
Benefits for an organization
If you want to find prime commercial property for sale for your own business, you will be making a sound investment. Not only will your employees, clients, and suppliers find it easy to reach the office, but it will also boost the visibility of your business.
Setting up business in a prime neighborhood helps improve your business’ reputation. Clients, partners, and other business stakeholders will view your business more favorably, as the location also demonstrates your business’s commercial worth. Also, premium office locations usually appreciate with time and this capital appreciation looks good on your organization’s balance sheet.
If you take into consideration the return on your investment and business potential, there will be no doubt remaining that prime office spaces offer you the best of both worlds. However, the value of such a property comes from its location. Hence, it is important to identify what constitutes a prime location.
What is a Prime Location?
Some of the factors that categorize a location as prime is as follows:
- Accessibility from different corners of the city
- A number of high-profile business in the neighborhood
- Quality of the buildings in the area
- Type of infrastructure the building offers
- Infrastructure of the neighborhood
To figure out whether a location is prime, here are a few parameters that you should use to examine the neighborhood:
- Can the commercial property be accessed by all available modes of transportation?
- Is the property located in proximity to important commercial hubs?
- What is the profile of the tenants in the area?
- Which types of businesses have a presence in the area?
- What is the potential of growth of the businesses operating in the area?
- Is the social infrastructure, like malls, cafes, shopping centers, and restaurants, good?
- Is the location planned well?
- Does the building that you want to purchase the commercial space in having a modern and aesthetically pleasing exterior?
- How well maintained are the other buildings in the area?