With about 29% of Americans citing it as their favorite long-term investment, the real estate market continues to thrive across the US. While a lot of purchases are residential, others take the leap and reap the benefits of commercial property investment.

If you’re looking to become an investor in the commercial real estate market, it’s important that you understand the basics, benefits, and investment processes. Read on to learn how you can start investing in commercial real estate in Orange County, CA.

Why Invest in Commercial Real Estate?

Commercial real estate is a tangible investment. It physically exists and can appreciate or depreciate in value over time. Rather than having a value that companies assign to it as stocks do, tangible assets have intrinsic value in their own right.

Tangible assets like real estate are good because they have real-world applications. This increases the value because you and renters can consistently use it.

Portfolio Diversification

Diversifying your portfolio is important because all investments come with risks. If you make a stock market investment that doesn’t pay off, you could be out a lot of money.

But diversifying with real estate investments makes it more likely that one of your investments will pay off. That way, if one fails, you’ll still have income and returns to fall back on. You won’t lose all your money.

Commercial real estate investing is one way to add a new type of asset to your portfolio. It can coexist with stocks, bonds, and other tangible assets like precious metals. You can mitigate risk and reduce the probability of a stressful financial loss.

Passive Income

Investing in commercial real estate is a great way to generate income. You can rent it out to businesses that will pay you a monthly sum for its use. All you need to do is maintain the building with the terms that you outline in their leases.

It’s easier to get more passive income from commercial real estate than residential alternatives. For one thing, commercial properties are larger. If you buy an office building, you may be able to collect rent from several businesses that operate in different parts of the property.

You also will be able to have longer leases with commercial renters than residential ones. While most individual home renters will want 1-year leases at most, commercial leases usually last between 5-10 years. You won’t need to worry about vacant properties, turnover costs, and unpredictable cash flow.

High Investment Returns

It’s also easy to get a high ROI on a commercial investment. This is because they tend to appreciate in value more over time.

There are a lot of great renovations that you can make to commercial buildings, and you’ll have a lot of time to do this. Since leases are longer, you’ll be able to work while people are still using the building in most cases. You won’t need to schedule upgrades around when people are living in the building since they’re not residential.

This is convenient and also helps you justify raising business’s rents when their leases expire. You can also sell it for more money down the line when it’s time to let go of the investment.

Types of Commercial Property to Consider

There are several different types of commercial property available to you. Retail storefronts are great for those who want a venue that hosts a business. This is ideal for well-positioned properties that get a lot of foot traffic.

You also may rent out an office building. Many investors like this because they’ll have the option to collect rent from multiple businesses in one building.

Unlike a retail store where only one person would pay you rent, you’ll get a ton of passive income from multiple people. Note, though, that you will likely need to perform more maintenance on these spaces.

Industrial facilities and warehouse centers are also commercial property options for new investors. You can rent these out to multiple businesses with similar manufacturing and distribution needs.

Because these facilities tend to be large, they’ll require a lot of maintenance and routine inspections. However, since you’ll be collecting so much rent, it’s often worthwhile.

If you’re looking to become a big-time real estate investor, you might consider purchasing multiple types of property. It’s a great way to expand your portfolio. As a beginner, though, research the pros and cons of each to decide what your first investment should be.

How Can You Make the Right Commercial Property Investment?

Before you get started, look at what commercial properties are available to Orange County investors. Carefully research the demographics in the area of prospective purchases and how much competition you’ll have for rent and leasing.

Properties in high-traffic areas tend to cost more upfront, but you can charge higher rent to businesses that want visibility. Consider this as you compare rates and decide on a location that’s right for your objectives.

Get the Right Funding

There are a lot of loans available specifically for those investing in commercial real estate. Commercial bank loans are the most common, and you can get a nearly unlimited amount of financing assuming that the property meets the bank’s basic requirements.

They’ll look at your personal lending habits and credit score, but they’ll also afford you more based on whether the property has a high projected cash flow and ROI.

Become an Investor Today

Now that you know the basics of commercial property investment, it’s time to become an investor ASAP. Our experts are committed to helping people like you find high-value properties in Orange County, CA.

We’re excited to discuss your specific wants and needs, so contact us to learn more about the properties we have available for sale.

The commercial real estate industry employs about 3.9 million people as of 2023. Because of this growing figure, investing in a new property is a lucrative way to grow your portfolio.

Here, we’re going to talk about how you can find and invest in the right commercial properties in Orange County, CA. Read on for some tips, tricks, and advice to ensure that you diversify your assets the right way.

Determine Your Objectives

There are three core reasons that people invest in commercial real estate. These are safety, capital gains, and income.

Safety is basically when people invest in something to diversify their portfolio. If you’ve already invested in the stock market, you’ve risked money on those stocks. The company you invested in could fail, which would lose you a lot of money.

But diversifying means that you’ll have other investments that could still pay off. Real estate is a tangible asset, meaning that it holds intrinsic value (though this value can fluctuate with its condition, location, and market value). It’s a more secure investment than volatile alternatives.

Capital gains come from the sale of an asset. People buying property may be doing so to flip it, meaning that they’ll fix it up and sell it again for more money.

If this is your goal, you’ll need to do a lot of upfront research about maintenance costs and how much you can sell it for later. You’ll need to compare the costs and potential gains.

Many people also get capital gains several years down the line after generating income, so this is a long-term goal for some people who primarily are investing for passive income.

Generating income is one of the biggest objectives for commercial property investors. This usually comes in the form of renting it out to businesses and organizations. You’ll want to figure out how much you can charge in rent based on market trends, location, building condition, and building layout.

Look at All Available Options

Look into multiple types of property, including:

• Office spaces
• Warehouses
• Retail venues
• Industrial locations

Determine which will best help you meet your objectives.

Once you know what type of property you want, you can begin to look at available properties in Orange County, CA. Don’t get set on a single property. Exploring multiple options with an open mind means that you can compare and contrast various investments to find the most lucrative one.

As you examine and bookmark potential investments, you’ll need to consider what makes a property valuable.

Decide on a Location

Profitable investments need to be accessible and well-developed.

Orange County is fairly large and has multiple areas. Some places have better infrastructure than others, meaning that it will be easier to find tenants willing to pay rent. You’ll also be able to sell it later for more money.

It also will be easier to conduct repairs on the property if you’re in a well-constructed area. While it may cost more upfront to purchase a commercial property in Irvine or Newport Beach, it will ultimately pay off since people want to work and commute there.

Value the Condition

You can probably find dilapidated, run-down commercial investments for a really low price. Unfortunately, you’d also need to pay for extensive repairs to get them back in good condition. This is almost never worth it, especially because it would take so much time and labor.

Make sure that you go to the property in person and assess its condition. If the structural foundation of a building doesn’t look sturdy or it has excessive water damage, you might want to look elsewhere. People won’t want to pay to rent out a poorly-maintained space, so you could be looking at months or years of maintenance before bringing in any kind of ROI.

Examine the Space

Once you find a property that looks promising, thoroughly examine its layout. The arrangement of a commercial property will impact how effective it is for businesses to operate there. If people won’t like the layout, it’s not a good investment choice regardless of the building condition.

At this point, you’ll also need to talk with professionals about coding and projects. Make sure that the building layout is free of hazards and up to legal regulations. See what you’d need to do to fix it if not and make sure that you can get permission from the necessary authorities.

This will give you the full picture of your investment and let you know what you might need to do to get a high return.

Understand Risks

All investments come with risk.

High-risk investments tend to pay off more, but they also can fail. That’s why diversifying your portfolio is so important. If one investment doesn’t pay off, another will keep you afloat.

It’s important to consider how risky investing in a specific property is before you put any money into it. This means looking into the area’s commercial property market, the history of the specific building, and market trends within the industry.

Be Mindful of Your Budget

While it’s better to pay a higher upfront cost to save money later, you also don’t want to overspend. Make sure that you stick to the budget that you originally set. Incorporate any immediate maintenance that you deem necessary into the upfront budget, too.

If you’re not careful of how much you spend, you might end up with insufficient funds for maintenance and upkeep. This is a surefire way to make your investment fail, so avoid it by calculating all costs accurately. If you’re unsure of anything, you can also talk with a financial advisor.

Invest in Commercial Properties Today

Buying property is a good way to obtain passive income, access a tangible asset, and ultimately turn a profit. Now that you know how to find commercial properties in Orange County, CA, it’s time to get started.

Our experts are excited to help you find retail venues, office spaces, warehouses, and more in the area. If you’re looking to buy or sell commercial real estate, contact us online or call (877) 775-9625 for more information.

In 2022, 5,044,748 new businesses were started in the US. Small businesses help drive the US economy and are some of the largest employers across the country. 

Starting a retail business requires serious planning and fortitude if you want your business to beat the statistics for long-term survival. 

If you have a passion and an idea, you can turn it into a successful retail business with proper planning. So, what should you do if you’re ready to start your own business?

Read on to learn the things you should consider and do before you jump into business ownership.

Create a Business Plan

Before you ever consider physically starting a retail store, you need to do some planning. Learn from the wisdom of others who have walked that road before. It would greatly benefit you to research expert business tips. 

One of the first steps in opening a business should be to create a business plan. This step forces you to work out your plan and organize it on paper. 

Most banks and investors won’t do any financing for a business that doesn’t have a concrete business plan in place. 

The business plan should outline your business mission statement, goals, and specific steps you’ll use to achieve those business goals.

Consider Your Start-Up Costs

Any business needs money and funding sources to get started. Maybe you’ve been saving to get your business off the ground. Or perhaps you’ll seek a small business loan. 

Either way, as part of your business plan, you need specific anticipated costs to get the business going. Let’s take a closer look at what some of those costs will include.

Location

You know the adage, location, location, location. Building a successful retail space means finding a location that attracts customers.

You need to evaluate the commercial real estate market for both what’s available and what it will cost to rent or buy for your business. 

You may also run into some renovation costs to set up a location so it meets your business needs. 

Rent 

Once you’ve narrowed down the location, consider rental costs. If you opt not to buy a property, you’ll need to commit to a lease agreement. 

Part of your business plan should include what rent will potentially cost for the duration of a lease. You also want to anticipate how much business you need to generate to cover this expense and others. 

Insurance

All businesses have a variety of insurance needs. You’ll need business insurance and liability coverage to cover the property and the goods inside your business. 

If you don’t have another avenue to get it, as part of your plan, you must also account for the cost of health care coverage.

Utilities

Once you start to consider properties for your business, you should be able to get basic utility information for a property. You need to consider your costs for:

• Gas
• Electric
• Water and sewer
• Trash pick up

Your utilities, like gas and electricity, will vary greatly depending on the physical size of your location and the climate in which you live. In Southern California, for example, much of the year, you should anticipate needing air conditioning for comfort. 

Product and Display

Your need for product and merchandising will significantly depend on if your retail business is product or service-based. Even most service-based companies have some products to sell. 

You need to work with vendors and evaluate your start-up costs to stock your shelves. You also need to anticipate costs for displays for the product. 

Employees

Some small businesses opt to start as one-person operations where the owner handles the business until revenue is coming in. While this might work short-term, it won’t be sustainable long-term.

You need to anticipate your costs for employee coverage. How many employees will you need on the payroll? Do some number crunching to consider how much revenue potential additional employees are? Does this number outweigh the costs?

Technology

You’ll have to be prepared for some technology costs for your business. You will need phones, computers, and wifi to run the business. 

You need to have a method of payment system in place. A robust retail point-of-sale system not only gives you a means for collecting money, but it usually also provides data collection and customer information security.

Marketing

One cost that many businesses forget to plan for is marketing. They have the idea and are ready to get started. But marketing costs are essential so others can learn about your business and you can retain returning customers. 

You should anticipate marketing costs for:

• Logo design
• Business cards
• Website design and maintenance

You need to obviously also consider any marketing campaigns to get the customers coming through the door. It would be wise to consider your costs for marketing for the first year as part of your start-up costs.

Secure Funding

Now that you’ve planned start-up costs, you can see that running a company requires funding. Your business won’t last long if you don’t have a plan for managing the costs. 

If you have a solid business plan with all the data for anticipated start-up costs, you can begin to research funding. Will you need a small business loan to get started?

Look for options for new business financing with terms that will work within the framework of your revenue goals.

Find a Business Location

Once you have financing in place, you can begin the actual search for commercial properties that fit your needs. Know ahead of time what amenities are important to you and how much space you need. 

Remember, location is one of the most important factors determining whether a business can attract customers. Be particular about where you choose for your business. Look until you find the right property for you.

Ins and Outs of Starting a Retail Business

Before actually starting a retail business, you need to plan for starting a retail business. The more time you spend planning and anticipating your costs and needs, the better prepared you are when you open the doors. 

Once you’ve done all the planning, you’re ready for a great commercial property and a proper grand opening celebration. For help finding the best property, call (877) 775-9625 to start your commercial property search.

Nearly 50% of businesses fail within the first five years in the United States. However, there are measures you can implement to help avoid this.

Finding the right business space for your company is essential when it comes to ensuring your future success. However, medically understands what to look for when browsing through different options for their office.

The good news is that finding the right office space in Orange County, CA is a straightforward process that doesn’t have to be difficult. Let’s take a closer look at everything you need to keep in mind.

Does It Have Enough Space?

When it comes to office space, size matters.

Make sure the layout fits your needs and that you have enough room for all of your employees, clients, and business operations. This means that you should pay attention to the number of rooms, cubicles, or desks available.

You should also check for other amenities like parking spaces or conference rooms.

Is It Close to Your Target Market?

Location is an important factor to consider when looking for office space in Orange County. Does the area have a strong customer base that you can tap into? If you’re in a high-traffic area, chances are people will be more likely to visit your business and become potential customers.

It’s important to weigh the pros and cons of each potential location before deciding on one.

Can You Afford It?

The cost of office space will depend on a variety of factors, including the size, location, and amenities available. Make sure that your budget is aligned with what you’re looking for so that you don’t overspend.

Keep in mind that you may be able to find cheaper options if you’re willing to settle for a smaller space or an area that’s not as close to your target market.

This might be the best option for smaller businesses that don’t necessarily have the largest budget. More often than not, you will be able to establish a presence in your industry and then relocate in the future.

Do You Have the Necessary Permits?

You’ll need to make sure that all of your paperwork is in order before signing a lease or rental agreement.

This includes obtaining the necessary permits and licenses to operate your business in Orange County. Be sure to check with local authorities and other regulatory bodies to ensure that you’re compliant with all applicable laws and regulations.

Don’t Be Afraid to Negotiate

When it comes to negotiating the terms of your lease or rental agreement, don’t be afraid to ask questions and push for a better deal.

This is especially true when it comes to office space, as there is often plenty of competition between landlords and tenants. You may be able to get discounts on rent or other perks if you have the right leverage.

Work With the Right Professional

Working with a knowledgeable commercial real estate professional can make the process much smoother and ensure that you get the best deal possible.

They’ll be able to provide insights on local market trends, help you weigh all of your options, and negotiate on your behalf if necessary.

Always Read the Contract

Before signing a lease or rental agreement, it’s important to read through the contract and make sure that everything is in order.

Pay attention to all of the details — including any fine print — so that you understand exactly what you’re getting into. If there are any clauses or terms that don’t sit right with you, don’t be afraid to ask questions or negotiate.

Tour Multiple Properties

Before making a final decision, you should always tour multiple properties. This will give you an idea of the different office spaces available in Orange County and make it easier to find one that meets all your needs.

Don’t be afraid to ask questions and get feedback from other tenants in the building if necessary.

Is It Comfortable?

Don’t forget to consider comfort when looking for office space.

After all, this is where you’ll be spending the majority of your workdays. Look around the property and make sure that it has a comfortable atmosphere with enough amenities and features to keep your employees happy and productive.

Will Your Employees Be Productive?

Productivity should be an important factor to consider when choosing office space. Look for features that will help your employees stay organized and focused, such as ample natural light, comfortable furniture, plenty of storage space, and good air circulation.

You should also think about whether the layout of the building is conducive to collaboration and communication between team members.

Is There Room For Future Growth?

When selecting office space, it’s also important to take your company’s future growth into account.

Think about whether the property has enough space for expansion and if there are any provisions in place for upgrades or renovations. This will help ensure that you don’t have to move again in a few years and can focus on growing your business instead.

Otherwise, you may end up spending more money in the long run. This could prove to be a substantial amount under some circumstances.

Finding Office Space Doesn’t Have to Be Overwhelming

Initially, finding the right office space may seem daunting. The good news is that the guide above has everything you need to know to make the process simple.

Looking for more information about what we can do? Reach out to us today to see how we can help.

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.