A commercial property can be a great source of long-term revenue. As with any real estate, location is key. However, there are some additional considerations that will help you determine the best use of the property. In this article, Rachuba Real Estate Advisors will explore some of the factors to consider before buying or renovating a commercial property.
1. Access – For many commercial properties, access to the property is a primary factor. If a retail property, will customers have easy access to the store? Is it located near an intersection and/or major highway? What are the ingress/egress factors for traffic? Does the facility accommodate tractor-trailers easily? Can consumers easily access the property from main highways?
2. Location – Along with access, the physical location determines the feasibility of the businesses who may rent the space.
3. Demographics of the Business’ Target Customers – Who lives or works nearby? Are these the types of customers the businesses in your property target? Demographics of the customer also determine if the customers will be local or from out of town. Out of town customers may require additional services such as hotels, restaurants, etc. Are these services located nearby?
4. Understanding Your Target Tenant – what trends may impact the property and/or your tenant customers? Franchises, big box stores, boutiques, all have different trends that drive their business. By understanding their businesses, you’ll be better equipped to manage the property to drive business, creating long-term success for all.
5. Unique Opportunities – Does your property’s location offer a specific competitive advantage to similar properties nearby? The physical location, the modernization of the structures, the amount of parking, the ability to offer a fiber network vs. a cable network all provide unique opportunities to maximize your properties value. An experienced advisor can help evaluate the pros and cons of your properties unique conditions and opportunities.
Ensuring that your real estate can support your goals and objectives and generate the revenue you anticipate is key to maximizing its value. Contact the experts at Rachuba Real Estate Advisors to schedule a free consultation.