Creating commercial real estate to lease or sell can be an incredible opportunity to find success. However, there are some inherent issues and challenges you must face if you want to get any kind of return on your investment, and, indeed, ensure you don’t end up with colossal financial disaster on your hands. Let’s take a look at everything you need to know about building commercial real estate and ensuring a valuable development.
Focus on a niche
First and foremost, what type of industry do you want to serve? Sure, you could set up an office block or factory space if you have the one, but to what end? Every industry has its own demands on the property they rent out, and you have to be able to cater to that market entirely. You will need a thorough knowledge of what makes those particular sectors tick, where they would prefer to be located, and a sound knowledge of contractors with experience of creating buildings for those fields.
Style to the market
The style of building will also be of immense importance to your clientele. If you intend to lease out to financial companies, for example, the chances are they will want a traditional, glass fronted block of offices that screams ‘power and money.’ But what if you are trying to appeal to manufacturers, farmers, or artistic, creative businesses – or even a mixture of all of them? According to https://fsconstructionservices.com/buildings/pole-barn-buildings/, something like pole barn buildings might be more suitable than an office block. Not only are they flexible in what they can do, but the aesthetics will hit the right notes with your market. So, think carefully about form as well as function if you want to deliver a tempting piece of commercial real estate.
Accessibility is essential
Once you know your market, you will need to research accessibility to and from your preferred development location. Again, different industries have different needs, so be wary of setting up in the wrong place. For example, manufacturing and shipping companies need close access to major transport routes,. Alternatively, office-based businesses might need to be near public transport links to allow their commuting workers to walk to work quickly from a bus or train depot.
According to http://smallbusiness.chron.com/commercial-building-inspection-checklist-18413.html, your city agency will perform many building inspections to ensure your real estate is safe and compliant with local legal requirements. It is critical that you pre-empt these inspections, and know precisely what they will be looking for. Ultimately, if you don’t pass your survey, it means another six months or so and a lot more expense than you can afford. Get it right the first time, and your commercial property will be ready for tenants straight away.
Finally, don’t assume that if you build it, they will come – it never happens like that. You have to have your marketing plan up and running long before completion, and try to entice as many businesses as possible to lay down deposits and sign contracts. Again, the longer the delay in finding tenants, the more it will cost you, so maximize your potential returns by starting the marketing process with a long time to spare.