One of the most popular segments of the real estate market in our country is commercial real estate. Thousands of square meters are constantly leased and purchased by business owners, and investors are looking for the most profitable options for investing money. The concept of commercial real estate combines various office premises, shops and other retail space, areas in new buildings set aside for commercial use, production and storage facilities, etc.
CRITERIA FOR THE SELECTION OF COMMERCIAL PREMISES
It is important to consider some criteria when choosing a commercial space. After all, real estate will bring you money only if it meets a number of specific requirements. So, here are the following tips you need to consider while finding the affordable commercial property for rent:
When choosing a place, pay attention also to the prestige of the area and the location of the property. Having correctly selected it, high liquidity and stable income from tenants is guaranteed. Even in the most difficult crisis times, the rooms that are located in the best places are in demand. The presence of a residential area nearby is another important factor when choosing. For premises where there is no traffic, the demand is much less. The most profitable and sought-after commercial premises are those located at the crossroads of the main streets of the city. Therefore, location is a decisive factor when choosing a room.
Availability of Infrastructure
For commercial premises of different types, it is important to have a different infrastructure. So, if you are interested in renting an office property, then take care of the availability of nearby parking spaces. The proximity of public transport stops, the availability of grocery stores and cafes all are necessary. Rental of retail space implies the presence of large pedestrian traffic; the room should be visible and easily accessible. For production premises, a railway track is often required.
So your company has experience relative success and is currently growing at an alarming rate.
You haven’t enough space in the current location, so why not branch out to a second office/retail store? A commercial expansion is one way of expanding your business out to another location in order to increase profits and expand your client database. However embarking on a commercial expansion can be a risky procedure so it important to make sure you get professional advice when it is needed most. Read more
Determine the Total Size of the Room
The other equally important factor is the determination of the size of the room. First, you need to decide for which purposes the premises will be used, what works will be carried out in it, how many staff or people will stay. Calculate the optimal size and area of the room so that you can easily rent the room according to the person’s need.
Verification of Commercial Real Estate Documentation
While choosing a property for rent, be sure to familiarize yourself with all documentation on real estate. You must independently or with the help of an independent lawyer examine the documents of the seller of real estate, make sure that he/she is the legal owner, who has every reason to dispose of the object. He/she must have all the documents in his/her possession, and they must be properly executed. After checking all the documents and preparing the missing ones, you can proceed to conclude a contract of sale or lease of the premises with the owner.
Calculation of the Profitability of the Object
The main thing that needs to be calculated is the coefficient of profitability of the object. It is calculated on the basis of the value of the object, the size of its area, and the cost of rent. Profit from one square meter of space should suit you and be at least attractive, while the lower the cost of the same square meter, the more it will be better. The next thing you have to negotiate with the seller is the price. Examine similar offers on the market, the advantages and disadvantages of the premises you are going to purchase. It is profitable for you to buy as cheap as possible.
The most important factors that need to be paid attention to when choosing a property are the location and technical characteristics of the building. If the room is in a good location, has an effective layout and convenient infrastructure, it will certainly bring profit to the owner. Therefore, while choosing the property for rent, consider the above-mentioned points to get a huge amount of profit.
James Burton is a professional trader and a part-time blogger. He is working for Savvy Training Room from last 7 years. He provides Meeting Room, Classrooms, Seminar Rooms, and Conference Room Rental Singapore. He also loves to write blogs about real estate.