Author Archives: Fritz

Commercial Real Estate

Which Type of Warehouse Is Right for Your Orange County, CA, Business?

types of warehouses

It’s easy to realize you need a warehouse but do you know they come in various types? Before contacting commercial real estate to help you search, consider the types of warehouses available and what you’re storing.

Warehouses are not the cold, dark buildings you see on TV crime shows, accessible for criminals to commit crimes. Modern warehouses are bright, clean, and thriving, with the activity necessary to keep your business moving forward.

You need to consider the type of product you will be storing, the difference between a warehouse and a distribution center, and more. Keep reading to learn more about storage facilities, so your warehouse investment meets your needs now and in the future.

Bonded or Customs Warehouse

This is a building where goods arriving from other countries may be stored or used in manufacturing. These facilities can avoid paying duty for up to five years following the arrival of a shipment.

Bonded warehouses allow the importer to sell the products first, then pay duty using proceeds from the sale.

Climate Controlled Warehouse

Climate control maintains a specific temperature. It protects perishable products from extreme temperature variation or moisture.

Dehumidifiers, insulation, thermostats, and HVAC systems maintain airflow, moisture levels, and temperature. Items you may find pharmaceuticals, artwork, meat, and produce inside.

Cold Storage

According to the United States Department of Agriculture, California has 107 refrigerated warehouses.

This warehouse is the equivalent of stepping into a refrigerator. Its purpose is to keep temperature-sensitive items cold to sustain their usability longer.

A surprising number of items use cold storage, including medicine, perishable food, cosmetics, artwork, plants, and candles. To maintain proper cold storage, products arrive and depart the warehouse in refrigerated shipping containers.

Contract Warehouse

This is very similar to the public warehouse option shown below. Instead of operating on a first-come, first-served basis, you have a guarantee of a specific amount of storage space. On-demand warehousing connects a business needing storage with a warehouse with space available.

Cooperative Warehouse

Natural food stores, wineries, farmers, and co-op organizations often use cooperative warehouses. The different groups using the warehouse pool their resources. Each gets warehouse benefits at a lower cost than if they were to lease or purchase a warehouse independently.

Cross-Docking Warehouse

This is a warehouse where goods arrive into the warehouse en route from one location before moving to their final destination. Products arriving on inbound trucks are off-loaded and sorted. They then load onto an outbound truck traveling to the last delivery location.

This type of warehousing reduces waste by providing a consolidation service. It gets all merchandise from various locations onto one truck to a specific place.

This reduces costs by preventing several trucks from traveling to the destination. The trucking company and the consumer save shipping costs.

Distribution Center

Many people believe a warehouse and distribution center are the same. The purpose of each warehouse is different.

A warehouse stores products for a lengthy time. A distribution center holds products for a short time. It has a higher in-warehouse turnover of products.

Large retailers often have centrally located distribution centers. This allows the business to quickly and easily restock its store inventory.

A distribution center is customer-centric. This means its general position is close to where the store is for quick delivery of products.

Distribution centers contain advanced technology to assist workers. Depending on the type of business, a distribution center may have pick and pack services, cross docking, product mixing, or packaging. The distribution center usually has more services taking place within its walls.

Hazmat Warehouse

The building structure is similar to a temperature-controlled warehouse. It stores hazardous materials needing specific storage conditions. This type of warehouse is generally in remote areas because of the danger in the event of a disaster.

Hazmat storage is mandatory for biological and radioactive materials, gasses, and chemicals. It is also necessary for storing weapons, ammunition, and explosives.

Depending on the location and items in storage, it may need climate control and enough space to prevent contact between products. Other requirements may include hazmat-trained staff and 24-hour security.

On-Demand Storage

This is an up-and-coming area of the warehouse business. The connection is with companies that need warehouse space temporarily.

This may be due to seasonal demands, storage of items during a business relocation, or more.

Pick, Pack, and Ship Warehouse

This warehouse is set up to handle on-demand shipping. This happens when a consumer places an order for a product.

When an order comes into the business, the warehouse receives a message called a pick list. The pick list instructs workers what items to pull and pack for shipping. They then attach a label and ship it to the consumer. 

Private/Proprietary Warehouse

The company owning the warehouse manufactures the product inside. This gives the organization a high level of control in handling and storing its goods. When you own the buildings on all levels of your business, you have more control over the product flow, storage, inventory, and shipping.

Public Warehouses

Another term for a public warehouse is a third-party logistics warehouse. This means it is owned and operated by a company that leases the space to other commercial operations. The location will receive, hold, store, and ship products from another company.

Typical warehouse management is on a pallet-in/pallet-out basis. The company cost for a product in the warehouse is calculated using the number of pallets or square footage the product takes in the warehouse.

Public warehouses are ideal for small businesses or seasonal retailers. The cost is less than having a private warehouse.

If you are seeking a warehouse for lease, consider this option. Keep in mind that available space is on a first-come-first-serve basis.

Reverse Logistics Warehouse

This is a warehouse for backward shipments (product returns). Depending on the reason for the return, the product may be repackaged and returned for sale. It may be repaired, recycled, destroyed, or refurbished in other situations.

Some companies maintain a separate reverse logistics warehouse that strictly handles product returns. Other businesses conduct shipping and returns at the same warehouse facility.

Smart Warehouse

This is the warehouse of the future. It uses automation systems and related technology to increase efficiency.

Automation increases production and prevents mistakes. It also reduces the number of workers necessary to run the warehouse.

Technology helps with product receiving, storing, picking, and shipping. The software maintains an ongoing inventory of all products in-house.

Selecting From the Types of Warehouses

If your head is spinning and you aren’t sure what to look for in a warehouse for sale, consider a few key factors.

Consider the storage needs of your product. Is it small or large and bulky? Does the warehouse have the software and hardware configurations necessary for your business?

Providing quick delivery is necessary for customer satisfaction. Consider the warehouse’s proximity to your customer base. If not close to customers, consider its accessibility to transportation facilities.

Consider the security level of your warehouse. Is it a safe location? Do you have security staff and cameras? You need protection from vandalism or theft.

How to Find a Warehouse

With so many types of warehouses, you may be wondering how you can ensure that what you purchase or lease meets your needs.

Commercial Orange County is a full-service commercial real estate brokerage firm. Call us at (877) 775-9625 to discuss your requirements. We will help you find the proper warehouse for your business.

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Commercial property

How to Choose a Retail Space for Your Orange County, CA Business

retail space

Are you a business owner looking for the perfect retail space in Orange County, CA? If so, there are plenty of options available!

To narrow down your selection, it helps to know exactly what you’re looking for and which features you need. Should you rent your space, or does it make more sense to buy? Do you need a certain amount of square footage? 

Then, there’s the location to consider! You want to make sure the site you choose will get plenty of foot traffic to drive business to your door.

It can be a lot to think about, so today, we’re breaking it all down and sharing how you can find the perfect space for your retail establishment. 

1. Establish Your Needs

Before you start searching for local brick and mortar stores in Orange County, start by doing a little bit of brainstorming. Take the time to think about all of the features and amenities your retail space must have. Consider how you plan to use your space, and the different functions you must complete. 

For instance, if you’re opening up a clothing store, you need enough room to display all of your inventory, as well as dedicated changing rooms. If you plan to open a bakery, you’ll need a separate kitchen. If you’re opening a service-oriented shop, such as a computer repair center, you may want a designated space for behind-the-scenes repairs. 

There isn’t a one-size-fits-all list of amenities to consider. Rather, your needs will be unique to your business. Once you list your essentials, have a little fun and think about all of the features you’d like to have, such as window spaces to set up seasonal product displays.

2. Determine Square Footage

The features you listed in the first step will help you with this one. Before you can set a budget for your space, you need to know exactly how many square feet you need. 

As you’re crunching the numbers, remember to keep the overhead costs in mind. Sure, you might love the idea of a massive store location, but you also have to heat, cool, and power all of that room. 

You don’t want to get into a space that’s too big for you to comfortably afford. Calculate how many square feet you need for your space to be functional and efficient, and start there. If you’re not sure how to begin, think about businesses that are similar to yours and check how many square feet they’re working with.

3. Set a Budget

Whether you buy or lease your property, you’re a business owner first and foremost. You don’t want to risk your establishment because the costs were too exorbitant. 

Before you get too far in the process, set a firm budget and try to stick to it. Use the square footage calculation above and research the cost per square foot in the area you’re eyeing. Then, use these numbers to determine your ideal lease rate. 

There are financing software tools designed to make this process as easy as possible, though you may be more comfortable working directly with a real estate agent or financial advisor. These experts can understand your vision and help you choose a location that you can afford both now and in the future. 

Still trying to decide? We offer a helpful price comparison tool on our website that allows you to cross-reference different lease rates in your desired locations!

4. Choose the Location

You’ve heard the mantra your entire business life: Location, location, location!

Thankfully, there are plenty of high-traffic spots in and around Orange County that are great for setting up shop. However, it isn’t always as easy as picking the most populated area.

In most cases, it’s best to position your retail location strategically near your target market, rather than the general public. If you haven’t defined who your target buyers are yet, you can follow this guide to find the answer to this important question. 

In addition to keeping your market in mind, also look for a location that’s near other businesses you can potentially partner with. If you find the right neighbors, you can send shoppers their way and they’ll return the favor. Don’t underestimate the value of setting up in a well-established shopping center where there’s plenty of foot traffic and helpful fellow business owners next door.

5. Consider Accessibility

Once you’ve narrowed your options down to a few locations, think about how accessible each spot is. Do you need a lot of parking spaces and are those available? If you sell large goods, like home furniture, you may also need spaces for docking and loading. 

Ideally, the location you choose should also be easy for shoppers to access by personal vehicle or public transportation. Plan to offer services like curbside pickup? If so, make sure there’s enough room for drivers to easily access that space.

6. Work With a Broker

While you could search for retail spaces for lease on your own, it’s usually much easier to trust a broker to help you! This is especially the case if you’ve never searched for a business location before. 

To find a great location that’s within your budget, we recommend hiring a commercial real estate company that has experience in the Orange County retail industry. Not only will they know all of the best local properties, but they can also help you negotiate a favorable rate and leasing terms with your landlord.

Find the Perfect Retail Space for Your Business

The perfect Orange County, CA retail space is out there! Now, it’s time to go find it.

This is a busy area that’s ripe with potential. Whether you’re opening a small establishment or a major enterprise, you can find the ideal space for you. 

At Commercial Orange County, we specialize in the leasing and sale of commercial property. When you’re ready to start your search, you can reach out to us to learn about all of the latest available spaces. Call us at (877) 775-9625 today and let’s take the first step together. 

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Commercial Real Estate

Commercial Real Estate Investment: The Top Mistakes to Avoid in Orange County, CA

commercial real estate investment

Did you know that real estate investments can provide investors with an average return of 10 percent? This means that if you put $100,000 into a real estate investment, in just five years, you could earn $50,000 – in ten years, you could double your money. But before you dive into your first real estate investment, it’s important to learn about the pitfalls you could hit. 

As with any investment, real estate investing comes with risk, but smart investors can avoid some of these downfalls. Read on to discover common commercial real estate investment mistakes and learn how to make smarter investments.

Choosing the Wrong Property

When you’re first investing in commercial real estate, one of the biggest mistakes you can make is choosing the wrong type of property to put your money into. There are four primary types of commercial real estate: office, industrial, retail, and multifamily housing. You can also invest in storage facilities, special- or mixed-use properties, or even undeveloped land.

Which type of property you invest in depends on your priorities and goals. For instance, multifamily housing investments tend to have higher returns, but they also require a lot more management and maintenance. You need to make sure to pick an investment that suits both your time needs and your financial goals. 

Not Doing Your Homework

As you’re trying to decide which property to invest in, it’s a good idea to do some research and learn about your local real estate market. You need to know about how much properties in that area go for, what direction the market is moving, and how many properties are available. This will help you recognize a good deal when one comes up and make education decisions about when it’s time to dive in with a property.

In Orange County, the median price per square foot for real estate is about $600 as of this writing. Right now, properties are selling for a little under list price in an average of two months. It is strongly a seller’s market, meaning there are more people looking for properties than there are properties available.

Not Planning for Taxes

Although commercial real estate investment is a type of passive income, it does still count as income and is taxed as such. When you’re planning your investment, it can be easy to get caught up in the profit you’re making and forget about those taxes. And unlike your other income, taxes may not be automatically deducted from these profits before you get them.

Work with a financial professional or tax advisor and figure out what percentage of your profits you can expect to pay in taxes. Then make sure you account for any potential tax liabilities you may face, including rising property taxes. And in the long-term life of your investment, you need to prepare for capital gains tax if you eventually sell your investment for more than you bought it for. 

Overreaching

When you start looking at your potential return from an investment in Orange County real estate, it can be easy to get swept up in the profits. You might be tempted to put as much money as you can afford into this investment – after all, the more you spend, the more you earn. But while real estate can be very lucrative, it also comes with its fair share of risks.

You want to avoid going into too much debt for your business investment – in fact, if possible, it’s best to avoid going into debt at all. Instead, start investing with the money you have saved, and don’t immediately dump all of that into one real estate investment. Remember that real estate investing is a long game, and give your money time to grow before you start pouring funds into the major investment properties. 

Forgetting Renovation Costs

Oftentimes, the best deal you can get on real estate is on properties that may need a little love before they’re ready to go on the market. Buying properties that need some work can be a great way to get into real estate investing if your budget is limited and to make your money work for you. But you need to make sure to account for those renovation costs when you’re budgeting for your investment. 

Ideally, you shouldn’t go into any debt to finance the renovations for your new property. You also need to build a buffer into your renovation budget to cover any unexpected costs. It’s almost guaranteed that you’ll find something you weren’t planning on, a job will be more expensive than you expected, or you’ll have to call in a professional to help you finish a job on time.

Flying Solo

The phrase “two heads are better than one” is an important lesson for any commercial real estate investor to learn. The truth of the matter is that, no matter how much research you do, you aren’t going to have all the answers about how to manage your property. An unexpected situation will come up, and you don’t want to try to flounder on your own for answers. 

Instead, reach out to investment professionals, trusted colleagues, and a network of fellow investors for advice. There is no situation you’ll come up against that someone in the investing world hasn’t already faced. Learn from their experience, and don’t be too proud to ask for advice when you’re in over your head. 

Learn More About Commercial Real Estate Investment

Commercial real estate can be an incredible investment, but it’s not without its risks. There are a number of common mistakes new investors make, but with the right precautions, you can avoid these and make smarter investments. Always do as much research as you can, choose a property that fits your priorities, and be sure to live yourself some wiggle room in your financial plan. 

If you’d like to learn more about commercial real estate investment, check out the rest of our site at Commercial Orange County. We are a full-service commercial real estate brokerage proudly serving Orange County. Give us a call today and find the hottest listings in Orange County.

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Commercial Real Estate

The Different Types of Commercial Real Estate in Orange County, CA

types of commercial real estate

Are you thinking about starting a new business in Orange County, CA? Or, do you plan to expand your current operations into a new location around this area?

If so, it’s important to know what kind of buildings are available. From small storefronts to large-scale warehouses, there are many different options to consider. 

Today, we’re taking a closer look at the types of commercial real estate you’re most likely to find in Orange County, and how we can help you find the exact space you need. 

Retail Properties

Let’s start with retail. 

retail property is a type of commercial property that’s specifically zoned to be one of three entities:

  • A service business
  • A store
  • A shopping center

If you’re a retail business owner looking to open a storefront in Orange County, your space must be zoned for retail use. This means that the local government has established an ordinance that dictates the building can only be used for that purpose.

In some of the more populated areas of our region, you’ll often find mixed-use zoning. This means that both residential and commercial properties can exist in the same location. In this case, the government instates zoning overlaps to allow joint use to occur. 

What happens if you fall in love with a space, only to find that it’s strictly zoned for residential use? In that case, you can submit a request asking for the government to rezone the property into a retail property. After the relevant agencies review your application, they can decide whether or not to grant your request. 

While this can lead to a positive outcome, most requests are not successful. That’s why it’s so important to work with a commercial real estate agent while exploring different properties. Our team can show you properties that are already zoned for retail use, so there’s no legal legwork to contend with. 

Where to Find Retail Properties

There are retail properties all around Orange County. However, certain areas tend to attract specific types of businesses. For instance, if your store sells convenience goods, then you’ll likely start your search in a heavily-traveled area that’s zoned for multiple retail properties. 

Then, there are niche-style businesses that are more strategically located based on the clientele they want to attract. For instance, beauty salons are often located near residential areas, so they have access to a wide range of nearby customers. Similarly, you’ll find technology companies and insurance companies in designated business parks, which are less accessible to the public. 

As you begin your search, think about where your clients will be, and how they’ll interact with your business. Then, choose a retail property that allows you to cater to them as naturally as possible. 

Industrial Properties

Industrial properties are very wide-ranging and nuanced. There isn’t one type of property that will appeal to every single manufacturer or business owner. The type that you need will depend on a range of factors, including the type of industry that you’re in, the size of your team, and more.

Some managers lease an industrial property because they want direct access to it. They want to rent it for their own business and plan to move their operations to that location. Other times, they’ll purchase it outright as a short-term or long-term investment.

Let’s take a look at the different types of real estate that fall into this sector.

Heavy Manufacturing

Buildings zoned for heavy manufacturing use are usually very big, with machinery and special features designed specifically for large-scale manufacturers. These locations are customized to fit the needs of each manufacturer, and new tenants often perform extensive renovations any time they move into a different space. 

Light Assembly

While heavy manufacturing buildings are large and complex, light assembly buildings are much simpler and smaller. This means they’re also easier to reconfigure if you need to change something about the previous tenant’s layout.

Business owners can use a light assembly space to:

  • Assemble products
  • Store goods
  • Set up office spaces

Bulk Warehouses

As its name implies, a bulk warehouse is very large. Most contain between 50,000 and 1 million square feet and are designed to be easy for trucks to enter and leave. Due to this requirement, they’re often located close to major highway systems. 

Bulk warehouses are ideal for companies that perform regional distribution activities and require space for large amounts of product and team activity. 

Flex Warehouses

Flex warehouses are smaller than their bulk counterparts. These buildings pull double-duty, combining industrial spaces with office spaces.

Like light assembly spaces, they’re simple and relatively easy to convert. You can arrange them to fit the needs of your company without major modifications. 

Office Spaces

If you need a light manufacturing area plus office space, then a flex warehouse might be just what you need. However, some individuals are interested solely in offices when investigating Orange County commercial real estate.

If that’s you, then let’s talk briefly about office building classifications. 

Class A Properties

Class A office buildings feature excellent construction. They’re also located in highly desirable locations, which makes them especially popular with real estate investors. 

Class B Properties

Class B office buildings are also well-constructed and designed to meet the highest possible industry standards. However, the one drawback is that their location isn’t as ideal as a Class A property. 

Class C Properties

Class C office buildings are ones that do not fall into either of the above two categories. While these won’t have as desirable construction or location, they can be suitable for many businesses, especially those operating on a strict budget. 

Browse Our Available Types of Commercial Real Estate

As you can see, there are many different types of commercial real estate located in and around Orange County, CA. Do any of these sound good for your business?

If so, we’d love to help you find the building of your dreams. We’re a full-service commercial real estate company with a great history and reputation in this community. Whether you want to buy or lease your next property, our experienced agents are here to help.

Browse our available properties to learn more about what’s out there, and contact us to connect today! 

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Commercial Real Estate

An Overview of Orange County Commercial Real Estate

orange county commercial real estate

Set aside the gloom and doom news you might have heard about California’s economic woes in this post-pandemic world. Many experts actually believe California is in for a robust few years ahead, and the state and country continue to recover from the pandemic. While the pandemic certainly had reared its ugly head in many ways, including for the Orange County commercial real estate market, things are rebounding.

Orange County is one of the world’s most recognizable counties, and as such, this big piece of Southern California real estate naturally attracts experienced people in business and investors. With their real estate investing, these people will bring Orange County back to its pre-pandemic status.

Get to know what Orange County has to offer and the types of commercial real estate Orange County has. Read on to learn more about some of the Orange County commercial real estate market trends.

Higher Than Normal Office Vacancies

In the pandemic world, the social distancing and lockdowns forced office buildings to go dark and workers to break open the computer at the kitchen table instead.

It’s probably not surprising to hear the office real estate in Orange County hit record-high vacancies. In fact, it had been almost a decade since that much commercial real estate sat vacant in Orange County.

Very slowly, Orange County office space usage is seeing a return to some form of normalcy like before the pandemic. Companies are slowly bringing workers back into the office from working at home.

This means that office space that has sat empty is seeing a shifting trend. It’s slowly filling back up with workers and businesses.

This is not happening quickly but as a slow decline in vacancies in the commercial office market.

High Vacancy Rates on High-Value Commercial Sites

The high-volume sites are one type of commercial real estate that seems to continue with high vacancy rates. Businesses are not coming back to the big open office space found in towers like they once were before the pandemic.

Orange County is seeing many large tower offices with higher-vacancy rates. It’s a twofold reason businesses are running back to those big office spaces:

  • Cost
  •  A shift away from large, open-plan offices

The market identifies these four and five-star properties as beautiful, luxurious, and even spacious, Yet, they simply cost more than some other options.

As business recover from the pandemic slowdowns they weathered, they aren’t quite ready to opt for these higher-rent options.

The other reality is that their workers are excited to return to big office spaces with open walls and many co-workers around them.

The market is seeing a slow and steady rebound for the smaller, more compact office building spaces. Some experts believe that the market overbuilt the high-value sites, and there’s more than the demand requires for the area.

Leasing Market Inching Towards Pre-Pandemic Status

Post-pandemic, it appears that the commercial real estate market is slowly improving if you plan to lease the property. The market has not entirely rebounded but is showing steady and favorable improvements.

It’s worth noting that most experts believe the market may have hit a bit of a plate on leasing, though.

Some experts suggest the challenges in measuring the lease growth for commercial properties. This is because while many businesses may have leases, there is a high volume of releasing between businesses.

Companies don’t want offices they’ve leased sitting empty if they have workers who aren’t returning. Instead, they are opting to sublease the property to avoid a loss.

Reduced Levels on Commercial Construction Sites

Interestingly, the commercial construction market is not rebounding as the leasing and buying markets have. While some new commercial construction has resumed in Orange County, it’s far from pre-pandemic levels.

It could be that the construction community recognizes the abundance of empty pre-existing real estate. They could also recognize an overzealous amount of building done pre-pandemic.

Either way, commercial real estate construction is only building at a rate of about half what they were doing before the pandemic. Experts believe it will take much longer for the commercial construction market to rebound fully compared to the leasing and buying property markets.

Commercial Property Sales

Commercial property sales trends come with a mixed bag of results, some good and some less favorable results.

Real estate investors are back to buying commercial property in Orange County but not at the same volume the real estate market had seen before the pandemic. That’s the less favorable trend.

However, the good news is that the value of commercial property sales is actually significantly higher than in previous years.

So, while fewer commercial properties are being sold, the ones selling are going at a much higher rate than in previous years.

Interested in Orange County Commercial Real Estate?

Whether you’re in the market to lease a commercial property or buy property, you need an expert who can guide you through the process.

If you’re ready to make a move in the commercial market, then you need to work with a commercial real estate expert who can assist you to get the right property for your business needs.

Whether you need help defining what kind of space your business needs or assistance narrowing down the best property that checks off all of your needs, a commercial real estate specialist can help you find the right commercial property for you.

Real Estate Trends in Orange County, California

There’s no question that the pandemic was highly impactful on the Orange County commercial real estate market. The good news is that as California recovers from the pandemic, the trends show the commercial real estate market following suit.

If you’re looking for commercial property in Orange County, whether to buy or rent, we can help. Let us help you find the right property for your business. Contact us today or call us call us at (877) 775-9625 for all your commercial real estate need, so we can get started working together.

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Commercial Real Estate

How to Invest in Commercial Real Estate in Orange County, CA

invest in commercial real estate

It might surprise you to learn that houses in the United States now cost over $350,000 on average. Some areas of the country are seeing an increase in home value faster than others, such as Texas, California, and Florida.

Interestingly, many people overlook the opportunity to invest in commercial real estate. In Orange County, there are plenty of opportunities to invest in commercial real estate. With the right approach, you can make a smart investment that will pay off in the long run.

Here are a few tips on how to invest in commercial California real estate.

Research the Local Market

Before you invest in any property, it’s essential to do your homework and research the local market.

This will help you understand the current trends and what types of properties are in demand. You’ll also get a better sense of the potential rental income you can generate. It’s also a good idea to consult with a real estate agent or broker who specializes in commercial properties.

They’ll be able to provide you with valuable insights and guidance.

Choose the Right Location

When it comes to commercial real estate, location is everything.

You’ll want to choose a property that’s situated in a high-traffic area. This will increase the chances of attracting tenants and generating rental income. It’s also important to consider the surrounding businesses when choosing a location.

You’ll want to make sure the property is near complementary businesses. For example, if you’re investing in retail property, you’ll want to make sure it’s near other stores and restaurants.

Consider Your Future Goals

When investing in commercial real estate, it’s important to think about the future.

You’ll want to choose a property that has the potential to appreciate in value. This will ensure you make a profit when you eventually sell the property. It’s also crucial to consider the future uses of the property.

For example, if you’re investing in retail property, you’ll want to make sure it can be easily converted into office space if the need arises.

Think About the Risks

Of course, no investment is without risk.

When investing in commercial real estate, it’s important to be aware of the potential risks. These include things like tenant turnover, vacancies, and repair costs. However, if you do your homework and choose a property wisely, you can minimize the risks.

This will help you maximize your chances of making a profit from your investment.

Work With a Professional

This is something you simply can’t overlook.

When investing in commercial real estate, you’ll want to work with a professional who knows the ins and outs of the industry. They’ll be able to guide you through the process and help you make the best decisions for your investment.

What Should I Look For in a Broker?

Finding a broker might seem difficult at first. But, there are key attributes to keep in mind to help you make the best decision for your situation.

Let’s take a look at some of the most notable.

How Experienced Are They?

Look for a broker who has experience in commercial real estate.

They should know the ins and outs of the industry and be able to guide you through the process. They will also help you avoid common pitfalls that you may have otherwise encountered. Keep this in mind when moving forward.

Do They Specialize in a Particular Type of Property?

It’s also a good idea to find a broker who specializes in the type of property you’re interested in.

For example, if you’re looking to invest in an office building, you’ll want to find a broker who specializes in office properties. They’ll have the required knowledge and resources to help connect you with the property that’s best for you.

What Is Their Track Record?

When it comes to finding a broker, you’ll also want to consider their track record. Ask them about the deals they’ve closed in the past and whether or not their clients were happy with the results.

This will give you a good idea of what you can expect if you choose to work with them.

What’s Their Network Like?

A good broker will have an extensive network of contacts in the industry.

This will come in handy when it comes to finding the right property for your needs. They should also be able to help you navigate the negotiation process. Although working with a professional who does not have a large network doesn’t mean you can’t get the results you want, it is less likely that you will be able to.

What’s Their Fee Structure?

You’ll also want to find out how the broker plans on charging you for their services. Most brokers work on a commission basis.

This means they only get paid if they’re able to successfully close a deal. However, some brokers may charge an hourly rate or a flat fee. It’s important to find out how the broker plans on charging you before you agree to work with them.

This will help you avoid any surprises down the road.

It’s Easier Than You Think to Invest in Commercial Real Estate

Just be sure to do your homework and work with a professional who knows the ins and outs of the industry.

This will help you make the best decisions when you invest in commercial real estate. Looking for other ways we can help you out in the future? Be sure to reach out to us today at (877) 775-9625 and see what we can do!

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