Category Archives: commercial property investment

5 Crucial Qualities of Commercial Investments

commercial-investmentsWhen looking for commercial investments, investors have to be smart and quick to see what matters most and what doesn’t. With the insane amount of options in the market, it is quite easy to feel overwhelmed. One can get sidetracked and choose something that doesn’t exactly fit the bill.

We all invest in real estate for different reasons but regardless of that, we must make sure that the following crucial qualities are present in the commercial property we buy.

  1. Location – With any type of asset, location is a very important quality but all the more for commercial establishments. Because these spaces are meant to be used for business reasons, location plays an integral role. They have to be conveniently situated in a sense that going to and from them is a breeze. They have to be in close proximity to transportation hubs and roads. They must be easy to find too.
  2. Safety – To safeguard not only assets but also the safety of employees and customers alike, the property and its surroundings must be safe. Structural integrity is important. Electrical wirings and pipes must be in good condition. The location must also be in an area or city with low crime rate. In fact, even certain architectural and landscape features that add precautionary measures are more favorable.
  3. Foot Traffic – By definition, foot traffic pertains to the amount of pedestrian and public exposure that an establishment or brand gets from people whether or not they are customers and regardless if they make a purchase. The more foot traffic a particular property gets, the more benefits it bring as it can turn non-customers into clients and regular clients into patrons. Examples of areas with assets high in foot traffic include airports and train stations, malls and central city markets.
  4. Parking Space – Almost everyone owns a car and with that comes the need to park it. A commercial property that does not have ample space for this will drive customers away. When buying, this is a feature that must be present at all costs unless you want customers to simply drive by and leave you out.
  5. Value – When looking for commercial investments, always get a property valuation. It is common for assets to depreciate overtime but it would be better to invest in one that appreciates instead, right? Prime areas with proximity to significant establishments and structures often get value upgrades. Also, check if the property has any renovation potential that can add value in the future.

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Creating Value for a Commercial Investment Property for Sale

commercial-property-investmentIf you want to put your commercial investment property for sale in the UK then you must be doing things to add to its value. To get better returns, owners, entrepreneurs, landlords and investors need to consciously strive to help their assets appreciate.

We all know very well that each property comes with a buying price, an estimated useful life and a salvage value. The buying or historic cost pertains to the amount for which you have bought the commercial asset. The useful life refers to the calculate estimate as to the number of years that the property will remain functional. The salvage value on the other hand may or may not be present and is equal to the estimated resale value of the said asset at the end of its useful life. These three factors are used to calculate depreciation which is equal to cost less salvage value all over life in number of periods.

It is quite common for a property to depreciate overtime but wouldn’t it be better if it appreciates instead? Wouldn’t you get better chances for returns if value goes up instead of going down? Yes and we are here to teach you a thing or two on how to achieve that.

First, stay up to date with repairs and maintenance. Do not let the asset sit down and wait till a buyer shows up your doorstep. You need to give it some TLC so as to preserve its beauty and functionality. You have to address the needed repairs and maintenance. They will come with a cost that is true but you have the option to capitalize it thus add value.

Second, invest in value accumulation improvements. You may want to plant some trees or shrubs on the front lawn, add units of shelving, upgrade furniture and fixtures and similar other renovations. These can really help when it comes to appreciating properties. When assets are improved for the better, there’s no reason for it to depreciate. Plus, doing so will make it more appealing to potential investors.

Third, aesthetic can make a penny’s worth quadruple. Simply adding a fresh clean coat of paint to brighten up the old dirty walls can do so much. Cleaning the front and backyard of fallen leaves and dirt and making the commercial investment property for sale smell good can do wonders. People are more willing to spend more on assets that have been well maintained.

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