When it comes to investing in real estate, you may want to look into the viability of commercial properties. Although purchasing Anchorage commercial real estate requires a larger financial commitment than purchasing a house, commercial property allows for a better ROI if you play your cards right.
The success of your investment depends on how good the property is. Of course, that can be vague, as people have their own definition of what makes a commercial property “good”. With that in mind, ask yourself the following questions to help you determine the kind of commercial properties you should invest in:
Which locations will stay hot the longest?
Don’t be caught up with looking for the “hottest” area in Anchorage. Trends come and go, and so will your profits if you try to ride the latest “high”. Instead, try looking for areas that has potential to stay popular for a long time. These may be locations that are near schools or several high-rise condo buildings. By choosing an attractive location for customers, you will inevitably attract tenants.
How many tenants can you handle?
Naturally, the more tenants you have, the more money you earn off of your investment property in Anchorage, AK. Don’t forget, however, that a landlord has numerous responsibilities, such as regular building maintenance, repairing HVAC systems, etc.—and you have to provide this for all your tenants. Know your limits and choose a commercial space that can accommodate the maximum number of tenants you can handle.
If want to invest in commercial real estate that can accommodate more tenants than you can handle on your own, consider looking for outside help. Many respected commercial real estate agencies, such as Graham Commercial Real Estate, also offer property management services. This way, you do not have to worry about personally attending to the needs of your tenants or having to actually find tenants. Professional property managers can do those for you.
What type of tenants do you want to attract?
Each commercial building has a set number of allowable uses, i.e. they can only accommodate certain kinds of tenants. For example, one building may be able to house twenty retail stores, but might not have the capability to house one mid-sized IT firm. Think about the kind of tenants you want to attract and look for commercial properties that address the anticipated needs of these potential tenants.
How to Purchase Commercial Real Estate, Inc.com
Tried and True Tips on Thriving in Commercial Real Estate Investing, Dummies.com