Unlocking Success: Property Choices in Modern Commercial Real Estate Investments

commercial office buildings in city

Significant changes are taking place in the commercial and retail property markets around the world right now, and numerous opportunities emerge.

If you have extra cash to invest in purchasing a new commercial or retail property, there are undoubtedly good opportunities. Everything depends on what you want and how much money you have.

In most areas, property prices are aligned with average market conditions. Each property sale or lease will be negotiated between the parties, and agreements can be reached through the “give and take” of business negotiations.

Priorities and Pressures

That is the best real estate market in which to work or invest. Buyers, sellers, tenants, and landlords have different priorities and thresholds they can use during a negotiation. Market agreements and negotiations will be in effect.

Many people say that “timing is everything” regarding property investment, and today is a prime example. Because some buyers have limited funds and cannot move on even the best properties, now is a good time to buy a commercial or retail property.

The Best Property Market

Well-positioned buyers and property investors are currently in one of the best markets. They can select which properties they want and negotiate a fair price rather than an inflated price.

So, what should you look for in your local property market? What types of properties do you prefer? What property locations are you familiar with? Simple questions like these will help you refine your property options and directions.

retail shopping mall

Things to Monitor

Try these things to monitor in your preferred investment location and across your property types. Your targeted investment properties will emerge. Locate properties with:

  1. Good tenant profiles – the business base of tenants is proven.
  2. Good tenant mix – a balance between all tenant types and lease conditions.
  3. Great location – assess each property regarding supply and demand locally.
  4. Solid lease documentation – a quality lease will enhance most investment properties.
  5. Low threat of vacancy – check out the vacancy risk and exposure over the next 24 months.
  6. A history of solid income growth – what are the rents now, and how do they compare to market?
  7. Good controls on expenditure – this is the costs of and the maintenance routine active in a property.
  8. Long-term anchor tenants of stability and popularity – anchor tenants underpin property performance and the successes of the specialty tenants.

Why Buy, Sell, or Lease?

Let’s say you have found an investment property where all these things align. So, why would a real estate investor sell one of these fantastic investments?

Many property investors are wanting to reposition their financing and or expand their portfolio with fresh assets.

Timing is Everything

This is a fantastic opportunity for those who can invest in commercial and retail real estate. Timing is a good leveller for those who can wait for the cycle peak to return.

However, let’s look at now and the next few years. Commercial real estate today is a buyer’s and seller’s market. Choose your property markets well and negotiate with realism in mind.


Discover more from John Highman – International Commercial Real Estate Author, Speaker, Broadcaster

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