When you're considering an investment in commercial property, it is wise to set some guidelines for your review to ensure you can evaluate the opportunities that different properties offer you.

There are many investment taj residencia properties that are available in the retail, office and industrial property market. This article won't cover the different kinds of leisure and tourism properties as they require more research and a lengthy reviews.

This list contains important information that can assist you in making an informed decision when investing in property.

A Few Important Property Concerns

  • Rent:The levels of the existing rent are important to the landlord or investor but even more important are the rent rates in the future. It's all about the amount of rent escalation permitted by the lease and for how long. A well-written lease that has a well-written rent review profile in a sound and well-managed property will always attract more property investors.
  • OutgoingsThese are the running costs. They must be balanced and with similar properties in the same location. If the outgoings are out of balance to similar properties, then you need to know the reason as any astute property buyer will ask about the outgoings. They are aware of the typical outgoings for the area and will not be tempted to spend more than the norm unless there's an argument that is solid and convincing to do so.
  • Demand and Supply:What other properties are likely to be on the market over the next few years , and what will they cost? What will that impact the property you're considering? Will this affect the profile of your tenant or their interest in the property? This is known as demand and supply. It could have an effect on the buyer's and tenant's interest in the area where your property is situated.
  • Locale:Is the property well-positioned to accommodate customers and passing traffic? Does it offer the ability to access easily for motor vehicles and people? Take into consideration the cost and availability of parking.
  • Design- Is the property well-designed and comfortable for users? A great investment in property usually looks good and is well-maintained. This helps to keep interest in the property from the perspective of the tenant as well as the buyer viewpoint. If they feel comfortable about the property when they visit it or utilize it, you're getting close to a successful property performance. To help in this process, you could interview people as they use the property in order to detect any potential concerns. In the case of retail properties this is highly advised as retail properties are heavily influenced by the mood of its customers.
  • AmenitiesAre you able to provide everything modern tenants, business or client requires? Facilities are a variety of things and it really depends on what the property's doing or offering. The majority of those who use the property expect easy access and ease of use. Retail property has a higher amount of attention in this category.
  • ServicesAre your property's services up-to-date and working well? This would include roads, gas, water electric and lighting, as well as telephones, etc.
  • ParkingCustomers and tenants are well-served in regards to parking. Access to the property is crucial and is highly valued. Motor vehicles are an integral part of life and business for everyone. Parking on the property is essential when it's not readily accessible.
  • Tenant Covenants:It is a direct connection to the documents of occupation and leases of the property. Covenant is a reference to clauses or terms in lease agreements. Each lease is different, so it pays to go through all occupancy and lease documents. Are the tenant profiles and leases strong enough to attract the next tenant?
  • Mix of TenancyPerhaps this is more crucial in retail properties, however it can have impact in office buildings. Some landlords must be very careful as to the tenants that they select for a building. It is possible that a low-profile or unsuitable tenant could detract from the customers that visit the building. Tenants will be more concerned about the ongoing occupancy of the building and could be less interested. This means that there are not all tenants who are the right tenants for the property. That's not even mentioning the issue of how close tenants are situated to each other. Are the tenancies well balanced to satisfy the customer demands? Tenants who live close to each other can influence their respective businesses by the impact on customers, products, trade hours, and staff.
  • ManagementThe success or failure of a property is contingent on the capabilities and process of its property management team. Property management can have a significant impact on operating costs, rent and the mood of tenants. Additionally, it has an impact on the stability of leases. Tenants are asked to talk about their most recent experiences regarding property management. Any negative feedback are a good opportunity to look into hidden problems.
  • Lease AgreementsDo they offer long-term stable and attractive occupancy and are they landlord-friendly? What is the duration of the lease or the terms of each lease and when do they expire at the same time? Does this present an issue for the landlord in regards to the stability of the property and its exposure?
  • Transport Routes:Every mode of transportation that goes to your property must be looked at. You must determine whether they are contemporary and practical. Are they able to serve tenants as well as the patrons of the property and how is that done?
  • Source raw materialsThe access to raw materials in industrial properties can pose a problem for tenants. What raw materials does the business or tenant require and how can they access these?
  • Power SupplyA lot of power is required in industrial properties. The availability of power is a decision factor for the tenant who is occupying the property. Contact the local power authority whether high-tension or 3 phase power is nearby or available.
  • Labor Availability:Business tenants need a labor source for their operation. This labor supply needs to be reliable and easy to access. Companies are usually located near to transportation corridors that lead to cities or towns. Is the labor market close and in operation? Is the labor supply able to get to your home easily? Transport options for public use will improve this situation.
  • Market for goods that end inIf your tenant plans to produce something then they must transfer it to their customers. What is the proximity of the market for purchasing products of the tenant and how can they reach it? Does the market for products or services of the tenant growing and strong?
  • Rent and Vacancies:They are a constant issue in the investment sector and need monitoring. The changes in population density or zoning regulations can quickly change the appeal of an investment property.
  • Market for Pre-Lease:These are the newest properties that are coming on the market in the near future. They usually are priced very competitively or rented out and could have an impact on other existing property in the area. The developer or the property investor who owns the older property will only have one aim to rent the property in full as soon as is possible. They will be chasing down tenants who live within your property.
  • Owner Occupiers:In investment properties There are two options either by renting or owning. A lot of businesses choose to rent or buy according to the economic conditions.
  • Investors demand:It is worth keeping an eye on the balance between shares and property markets. Property investors invest to provide longer-term investment stability. If the market for shares is unpredictable and volatile the property investment is moved towards the top of the list and becomes the investment of choice. The only challenge investors have is in getting the financing from banks when they require it. This means that you need to keep track of the returns between shares and properties.
  • Corporate Businesses:Large companies love to eliminate capital from their balance books. This may mean the sale or leaseback of property. This is also usually done when the property is in the end of its life or is in need for the tenant. They might sell the property or take a long-term lease to assist them in establishing their next strategy for property. Always look for businesses and tenants that are in the stages of transition or change. Mergers, acquisitions, expansions, contractions, etc. all create pressures on the property that the tenant might be living in.