When it comes to buying strip malls, office buildings, and other commercial real estate, you have to think about more than just the price of the property. A commercial location is only as valuable as its long-term potential. You wouldn’t want to invest in a piece of real estate that will be worth half its current value in less than 10 years, right? To ensure that horror does not happen, you need to consider the current and future properties that surround the one you are looking to purchase. This is the only way to guarantee a good investment.
Whether you choose to open a business in your commercial space or rent/sell it to another business owner, you have to think about the number of customers your space will get over time. The name of the establishment will not be enough to get people in the door. You have to rely on some of the existing traffic to build a customer base. If your property is near a lot of other commercial property that caters to the same general audience, you are much more likely to get a good flow of traffic coming in. Look at the businesses surrounding your potential purchase before getting something with no marketing opportunities.
With new construction, it can sometimes be difficult to plan for what is to come in the area because it is mostly just blank land. What you then want to think about is the way the area is expanding and how that will logically play out in the long run. Does it look like there will be more apartments in the area, or are there commercial spaces ready for additional businesses? Is the property on the outskirts of the development, to the point that nothing else will be coming in the future? Think about where you could easily see the space going in the future to determine if the property will get enough traffic to maintain its value.
Public Transportation and Walking Distances
Public transportation is becoming a signature method of commuting these days, especially in large, overcrowded cities. If you can secure a location near a bus station, subway station, or similar, you will naturally gain the interest of future buyers and lease holders. You may also want to consider your proximity to housing areas that may cater to customers. If the space is within walking distance of those neighborhoods, you could have a steady flow of traffic early on.
When it comes time to sign away for a piece of commercial real estate, make sure to think about the area as a whole, not that individual property. A stunning diamond can look like a plain rock when thrown in a pile of gravel.