You hear location, location, and location when it comes to real estate opportunities but that sentiment also extends to commercial real estate as well. Picking a prime location is crucial for both; an initial investment or investing into an already existing business property. This article will take a look at some of the most important ways that location can impact your commercial property investment.
Numerous things influence finding a commercial property but investors should always check the proximity of their potential property. The closer your commercial property is to things like schools, warehouses, public transportation and freeways will influence the value of the property and can be a great indicator of potential growth over time.
Property zoning is a crucial factor to consider because this determines the allowable uses for the commercial building you’re investing in. Potential investors should request zoning verification to confirm that all of the information is available and correct. The fewer zoning restrictions there are the more you can adapt your property to fit shifts in the neighborhood and area. You can also look in to rezoning options to shift the building’s purposes to fit your needs before investing in the property.
Take into consideration the area that you’re investing in and look up the flooding or seismic reports for the area. This is beneficial for two main reasons: you can learn the potential damages that can occur to the property and you can begin to plan for any future expenses and costs from new legislation. If you invest in a property that didn’t receive a retrofit according to new laws or codes passed then your investment will quickly turn into a costly endeavor.
Consider Vacancy Numbers
Before investing in a commercial property look into the vacancy numbers and find locations with less than 5% vacancy. This means that tenants are less likely to vacate which will lead to higher rents and capital appreciation over time. Investing in higher vacancy locations can give tenants options to move or renegotiate their rents.
Safety & Security
Commercial properties have numerous expenses including on-site security for the plaza or property. Investing in a location with less risk of crime or other safety hazards will help you keep costs down with additional safety or security measures.
Think of the Neighborhoods
Another one of the most important parts of choosing the right location to invest in is to consider the nearby neighborhoods. Investing in a high-end company or shopping center can be a great opportunity but if it’s located in a low-income area or an area with fewer homes and residences nearby then it may be hard generating any returns on your investment. Always think of the neighborhoods in the area and the residents before making an investment.
Access to Popular Restaurants & Shops
The closer your commercial investment is to a particular town or the most popular part of the city then the better your location will be. When looking at coastal property investments then the closer your property is to the beach then the more valuable it will be and you will see a higher return on your investments.
Helping You Find the Right Fit
Instead of being forced to sift through numerous options and opportunities it’s important to work with a company that can help you get the most out of your investment. At Landwin we handle the heavy lifting when it comes to finding potential investments that we believe are as close to a sure thing as possible. Instead of fretting about costs and location we compile successful options for you and work closely with you to manage your investment in everything from shopping centers to businesses and everything in between.
For decades Landwin has remained the industry leaders’ in commercial real estate investing and have helped our clients develop their portfolios. We help investors with all experience levels ranging from brand new first time investors to more experienced ones looking to add more successful ventures to their portfolio. Choosing the right location can make or break your investment and at Landwin we make sure to find you the best opportunities so you get the most out of every investment.
Call Landwin today to speak with a member of our team about possible investment opportunities.