Your Guide to Commercial Property Investment

Commercial Property Investment

If you’re looking to invest in real estate, commercial properties present plenty of opportunities. However, you need to consider the risks and market drivers. This commercial property investment guide will help you.

You must think about more than the property investment basics when investing in commercial real estate. There are many complex market issues at work, which means you take on more risk.

Understanding these issues will play a role in the success of your investment in real estate. Commercial properties come in all shapes and sizes, which you must account for. This commercial property guide will equip you with the tools you need to succeed.

The Market Drivers

Several drivers affect the state of the commercial real estate market. You must understand what these drivers are before you can invest successfully. They include the following:

The Risks

There are also several risk factors to consider when you invest in commercial property. Here are some of the most important:

The Lease

A poorly-constructed lease could lead to the failure of your commercial investment. These are the factors to consider when creating your leases:

What Else Should You Consider?

Depreciation CalculatorFurther to this, you need to arrange proper financing for your purchase. Many residential lenders can’t help you with commercial properties. As a result, you may have to locate a specialty lender. Furthermore, you may not be able to borrow more than 70% of the property’s value.

You’ll also deal with a commercial agent, rather than a real estate agent. These professionals specialise in attracting the right businesses to your property. They’ll also help you to create attractive deals for potential tenants.

The Final Word

As you can see, commercial investment is a complex subject. This commercial property guide will equip you with the tools you need to succeed.

The team at Washington Brown can also help you to claim depreciation on your commercial property. Contact us today to speak to a Quantity Surveyor.

About Tyron Hyde

Tyron Hyde is a director of quantity surveying firm Washington Brown. He is regarded as one of the industry's leading experts in property tax depreciation, is regularly quoted in the media & asked to speak at conferences. -