Commercial real estate can diversify your portfolio, create tax benefits and build long-term wealth. However, making that investment into commercial real estate can be a risk, especially to those without previous experience or industry knowledge. So always work with professionals and do your research before making any final decisions.
Put Together a Great Team
No matter where you are on the investment property learning curve, it's a good idea to get advice and support of industry experts such as commercial real estate agents, property attorneys and property management firms to assist you in making the right decisions.
Do Your Research
Research similar properties, including incomes, the demographics of the residents in the area, the traffic, the vacancy rate, current trends and industry information for the businesses you may have as tenants. Also, if you are buying an occupied property, know how long the leases are for the current tenants and at what price. Are the at fair market price? Will these tenants stay to renew under new management? Are the tenants you would like to keep?
As with any investment, commercial real estate requires due diligence and a keen business sense. Consider carefully before investing and always seek the advice of professionals to garner the best results.