“I am here to build something for the long term, anything else is a distraction”,- Mark Zuckerberg once said. Forming strategies is easier and sticking to it is something that takes a lot of effort, sacrifices and hard work. To invest smartly you need to form a strong commercial property investment strategy that can guide you to your ultimate goal of investing.
We are all around commercial real estate developments happening in the country every now and then. The options are unlimited and funds are scarce so to utilize scarce resources efficiently and effectively one needs a thorough plan with brilliant strategies and work as per that no matter what. To form commercial properties real estate strategies one needs to know certain facts:
- What does a commercial property include: Offices, retail spaces, apartments, RV parks, billboards, medical hospitals, industries, hotels, malls etc.
- Ways to earn money through investing in commercial property: Income through running operations of the building or tenants paying rents, and appreciation in the value of property over a period of time.
- What does it take to invest in commercial property: Investing not only requires adequate capital but also expertise and time to make such an important decision.
For commercial property investment analysis, investor needs to emphasize upon following factors:
- You must choose a commercial property to invest in which you will engage tenants till the lease is active, as good rentals increase income and growth of the property value.
- Conduct research before buying property, by finding answers to three basic questions:
- What was the previous market status?
- Current status of the market?
- Future prospects of the property?
- One of the most important commercial real estate strategies is to be ready for rezoning, if there is rezoning from the industrial sector to a Shopping Mall which might increase the value of growth.
- Always be ready to divert from the original plan or investment strategy if any lucrative opportunity occurs. Flexible strategy sometimes gives unplanned gains, so always be open to divest at the right time.
- Consider a fixed income strategy by investing in high yield real estate commercial properties. Such properties have good intrinsic value and margin of safety.
- Another is value added strategy, wherein you tend to acquire existing commercial properties below replacement cost and investing capital to increase their competitiveness.
- If you go for opportunist strategy you tend to acquire underutilized and well located properties, as these properties have immense potential for future growth.
Commercial investment strategies are the best way to allocate your funds in the best possible asset that yields long term benefit.
After considering and applying a combination of commercial real estate strategies, you can make a well rounded portfolio and put consistent efforts in delivering better results as per your risk appetite and ultimate goal.
Shriram Business Park is a one stop destination for current commercial property investors looking for the most attractive growth opportunities, income and gains, and luxury taste at the most affordable prices.