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CategoriesReal Estate

Things to Consider While Investing in Commercial Real Estate

Things to Consider While Investing in Commercial Real Estate

Investing in commercial real estate is such a daunting act that people are usually overwhelmed by it. The entire process causes people to overlook certain things while making the big decision of investment. These lapses in awareness can cost a lot of money and should be avoided at all costs.

If you are looking for any commercial office space in Hyderabad or anywhere else in India, here is a list of things to keep in mind before making any investment.

commercial real estate

 

  • Location: Location is probably the most important factor when it comes to the price of commercial real estate. Properties in good locations like a commercial space financial district are guaranteed to give you good returns. Facilities like good transport system, distance from the metro, airport, and other factors are to be considered when choosing a good location.
  • Scope for marketability: Marketability is an important feature of commercial real estate. If you wish to create a continuous flow of cast from the property you’ve bought, you need to make sure that it looks attractive. Features like high tech, parking spaces, and security features make a facility look enticing. Commercial space in Gachibowli is a good reference for this.
  • Documentation Process: A lot of times, people buy a property only to find out about some legal dispute that causes them a lot of money.  All title-related documents, approvals, taxes, etc. should be sent to legal authority for verification beforehand. If the facility is tenanted, the contract should be read thoroughly and understood to the very last detail. This ensures that there are no red flags in the future. All forms of mortgage and other pending dues should also be cleared beforehand.
  • Facilities and Amenities: If you’re buying a facility in a good location like a place near commercial property in KPHB, then it is your responsibility to make sure that the space offers state of the art facilities and amenities. In the commercial real estate market, almost everyone offers huge spaces. It is the facilities and amenities that separate the best from the rest of the crop. If you want a good return on your investment, then facilities like 24/7 power backup, cafeteria or food courts, essential retail facilities, sports arenas, and internet services should be readily available.
  • Tenant profiles: Understanding the different types of tenants available is crucial to your business. Instead of leasing your property for residential purposes, it is better to rent it to a commercial business. Unlike residential leasing, properties are leased to commercial firms for years. This ensures that there is a continuous supply of income for a longer period of time. Understanding your rights as a landlord is also important.

Even though investment in this sector can be quite lucrative, it is not something that you should do in a hurry. It is very important to properly research all the details before taking any decision. Big risks give you big returns, but in the long run, only those who take calculated risks win.

 

Also read: Best Place to Buy Land

CategoriesReal Estate

How to Select the Best Commercial Space

Selecting a commercial space depends on many factors. To select the best property or lands, you need to have your requirement list ready and start searching for one. The best commercial space comes with various factors mentioned below:

1. Nature of your business

The nature of your business decides what kind of space you require. The size of the space is dependent on the number of employees you would want to operate in that area. For example, you want a production space then there should be enough room to accommodate the people as well as equipment’s and machineries.

Poor planning of the workspace will leave you having a clustered space where working becomes difficult. The staff will become unproductive as well as unprofessional and the health of your company will start going downhill.

2. Space Layout and Amenities

The space layout decides what can fit inside the working space. Where can you situate the furniture and other things like a small kitchen etc. Sometimes you might feel the space is large but while placing the furniture, it may appear clustered.

A safe and comfortable working space gives birth to productive employees. The amenities of your commercial space will be the deciding factor. Many offices have a 24/7 coffee filter for their workers and some even offer free food.

3. Choosing the right location

The location will boost your business. If your company is situated at a place which is nearer to the railway station, then the chances of people choosing it increases because it saves their time and money. Also, a good developed location works wonders to impress the clients and conduct conferences and meetings.

Though it will be difficult to have a prime location commercial space, but it will leave a good brand image which will have lasting effects.

4. Read the lease terms carefully

After you have selected the best location for your business do not get too excited and rush to buy the property or sign any kind of document. The owner will push you to sign the lease documents as soon as possible but it is important to read all the terms and conditions and clarify any doubt or lingering thought.

Sometimes, charges are being hidden or false promises are made. Finding these out later will ruin your brand image. So, make sure you read those papers and make the right decision.

Conclusion:

Before buying any kind of commercial space, get a better understanding of the property or the lands you are buying. Buying a particular space depends on your requirements therefore for each one it is different. You can be a manufacturing company so a huge space must be required to carry out production or you can be a small telecommunication start up and that will require a different type of space.

Therefore, make sure whichever space you choose, it fits your requirement properly and you can get the best outcomes from these places.