The Ultimate Guide to Investing In Commercial Real Estate

If you fancy taking a foray into the world of real estate but the idea of plowing your time and effort into a fixer upper seems like too much hard work, you might be keen to look into the world of commercial business premises. Purchasing an office block, warehouse or storage units to then lease out to small startups can be a lucrative way of making a bit of extra cash. If you’re looking to pump some of your hard earned savings into a side hustle rather than seeing the pennies languish in your bank account, take a look at how real estate could be the answer.

Location Is Key

Although the location of any property is vital if you are to make money from it, this is even more apparent with a business premises. Purchasing an office with no transport links, no chance of footfall, in a crime ridden area and in the middle of nowhere might be cheap, but you won’t find much uptake for your premises no matter how modern they are. Instead, seek out those areas that are full of startups. Small businesses want like-minded companies as their neighbors to encourage physical traffic to a location. How many times have you seen a dozen or more sandwich shops on one stretch of road? Competition, while tough to navigate, facilitates greater opportunities to make money, which is what every startup is looking for.

Opt for a city center location, don’t scrimp on the purchase price, and consider the square footage. You are much better off buying a smaller office in a better location, than a vast expanse of space where no one is seeking to lease.

Modernize

Just because you have a profitable chunk of real estate in a sound location doesn’t mean it will fly out of your hands to the first entrepreneur that views. You need to seduce your potential clientele with a business lifestyle. If your office space has beige carpet flooring, polystyrene tiled ceilings and damp around the windows, no one will lease it from you. It’s up to you to make sure it’s fit for purpose, in the same way a residential landlord does with his housing portfolio. Whip out the white paint, employ top quality commercial cleaning services, put up some cool artwork, place some zones and collaborative pods in the space and install a decent WiFi router and server.

Businesses want to enter the premises, whip out their kit and hit the ground running. If you can facilitate this, then you will be more likely to rent quickly and receive a strong yield in return.

Use The Right People

Listing your property needs to be done wisely. Don’t fall for the patter of the real estate agent who swears they can achieve an unrealistic rent for you. Your property will wallow on the market for months. Instead, seek out the agent who has a high turnover of stock, a long client list and who is proactive in securing viewings. Yes, the commission may be a little more, but you are paying for an exceptionally quick service. Getting your office, warehouse or unit leased quickly is the most important thing to ensure money is being recouped quickly.

Investing in real estate as a side hustle is a popular way for the amateur investor to make money. Follow this guide and consider commercial real estate for your portfolio.