Sunday, December 5, 2010

What Do You Need to Know When Investing in Commercial Property?

The commercial investment property sector in the Carolinas is looking strong in the coming year and we predict it will make a near-to-full recovery throughout the year. Expect positive growth in rent and capital values, which will support your investment, and allow you to recoup some costs from the last few dismal years.

This is great news for many commercial property investors and owners like yourself. For those looking at making a start in commercial property, or who are interested in buying an additional investment property, there are some things you need to remember about making an investment in this economy. The industry is vulnerable to a number of fluctuations and does not always follow the trends of the rest of the market--so it is important to understand how!

Design: Codes and Trends-
Commercial office space and industrial property responds more strongly to changes in building design trends. Compliance and standards can also add to the costs of maintenance of commercial property which can affect your profit margin. Make an effort to keep

Location, Location, Location- if the prime industrial district shifts, or the other commercial properties around yours close, this could drastically change the capital value of your prospect and your potential rental return of your investment.

Buy With the Intent to Sell- commercial property can be harder to sell in tough markets than other investments. In a tight market, where it is a buyer's market, remember that whatever you buy, will at some point need to be sold. So a good deal needs to be a money-maker - each and every time.

Risk- As with any investment, there is risk involved in commercial real estate. Investing means you are taking on all of the risk associated with the ownership of the property, and will be responsible for any maintenance costs and upgrades that need to be made. You need to be willing and able to accept the risks -- take full responsibility and ownership and

The most important thing to remember, is that if you are interested in making a sound commercial property investment. Make smart choices and have a diverse portfolio! Real estate helps to offset shorter term investments and a good balance of residential and commercial are the often the most practical.

If you would like more information on commercial property investment in the Carolinas, give Kuester a call at 888.600.5044.

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