Are Commercial Buildings For Sale A Profitable Investment?
Some corporations have a lot of money to invest. They can invest in almost anything. However, one area of investment that is the most attractive to them is real estate. Investment in commercial buildings for sale ensures continuous cash flow for many years for the investor.
Investment in commercial buildings for sale can be in various type of buildings. If an investor is looking for commercial buildings for sale and wants to invest in apartments then this decision is a solid one. Investing in apartment buildings is however a management intensive investment. Often the leases are for a short period of time. The investor also requires a lot of money for maintenance because of the high turnover of the tenants but this ensures a high occupancy rate.
There a number of things that an investor should consider when negotiating for apartment buildings when considering commercial buildings for sale. These are:
- Minimize your expenses.Some of the expenses which occur when purchasing commercial buildings for sale include accounting, advertising, cleaning, disposal of garbage, insurance, maintenance fees, management of offsite property, management of on site property, controlling pests, sweeping, repairing, painting, security, and many more. These expenses must be minimized. As the old saying goes,a penny saved is a penny earned.
- Be careful when investing in commercial buildings for sale. Invest only in those locations or areas which are considered good locations and potentially profitable with no deferred maintenance. Remember the three conditions.. location, location, location.
- Keep a distance from locations that employ regulated rent control such as Los Angeles and Berkeley.
These are simply guidelines that an investor should consider before making a decision on purchasing commercial buildings for sale.
If you are planning to buy commercial buildings for sale such as office buildings then that option requires a different set of guidelines. Office buildings are generally single or multi-storey buildings. Single-storey buildings can be used as corporate headquarters of large companies and organizations. These are generally more sensitive to the finances and if for some reason it becomes vacant it may be difficult to find a replacement tenant. However multi-storey buildings can be also leased by small businesses. Keep in mind though, if an area of a multi-storey building is vacated only a proportion of the rental income is compromised.
Other commercial buildings for sale suitable for investment are medical buildings. These are basically leased by the dentists and the doctors of this world. A good location for such buildings is in close proximity to private or public hospitals thus making it easier for the doctors to go back and forth between hospital and their offices. Many investors prefer to go for medical buildings because the medical tenants generally are recession proof. These types of the commercial buildings for sale are therefore considered a favorable option for investors.