Commercial real estate investing, Dallas


If you follow the principles of long term investing, you can earn much higher returns than most debt instruments. Keep the following points in mind while investing.

Location, Location, Location

Location is everything. Commercial properties provide returns through two avenues— rent and capital appreciation. Both are heavily dependent on the location. Look for locations where vacancy is less than 5%.
A high vacancy location gives tenants options to move and renegotiate rents.

Quality: B, B+ OR A

Two buildings may be in the same location, but the one boasting better quality will always get rented first. It will also attract better quality of tenants. Needless to say it will fetch the investor higher rents, better tenant retention and higher capital appreciation.
Multinational tenants are always willing to pay a premium for quality. Look for certifications like LEED gold or platinum ratings or buildings that have nicer looking lobbies, more elevators, higher ceiling heights and better views. Higher quality properties are also more liquid and can be sold much faster.

Demand vs Supply

This is one of the first things a savy investor has to analyse before committing to buying a commercial property. Every city has different micro-markets. Annual demand is also published regularly by brokers like JLL, Cushman and Knigh.

Market rent vs in-place rent

This is a slightly advanced concept that institutional investors use to see how risky the property is. Let’s assume that there are three properties available at more or less the same price but each with a tenant paying different rents.
* Building A has tenant paying Rs 10 and is selling for Rs 100
* Building B has tenant paying Rs 11 and is selling for Rs 105
* Building C has tenant paying Rs 9 and is selling for Rs 95

Quality of tenant

A good tenant can significantly increase the value of a commercial property. Looks for bluechip multinational tenants and avoid smaller and unknown companies. Good tenants pay rents on time, pay higher deposits, stay longer and increase the value of the property.

Interior fitouts

As an investor, you should always ask who has done the interior fitouts in the property. When an office is delivered in India, it is provided bare shell (like a garage). A tenant who has done his own fitouts is likely to stay longer in order to sufficiently recover the costs.

Comments

Post a Comment

Popular posts from this blog

Best Clinic to get Coronary Artery Disease Treatment in Waco, TX

Image
What is coronary artery disease? Coronary artery disease (CAD) is a condition in which plaque builds up inside the coronary arteries. These arteries supply oxygen-rich blood to your heart muscle. Plaque is made up of fat, cholesterol, calcium, and other substances found in the blood. Over time, plaque can harden or rupture, leading to a heart attack or stroke. CAD is a common type of heart disease. It is the leading cause of death in the United States for both men and women. CAD can cause angina (chest pain) or a heart attack. A heart attack happens when plaque ruptures and a blood clot forms in the artery, blocking blood flow to the heart muscle. What are the symptoms of coronary artery disease? Coronary artery disease (CAD) is a condition in which the arteries that supply blood to the heart become narrowed and hardened. This can lead to chest pain (angina), shortness of breath, heart attacks, and even death. CAD is a major cause of death in both men and women in the United
Read more

Top Reasons to Use an HTML Gmail Signature Generator for Your Business

Image
Email communication has become an essential part of daily business operations. As such, it's critical to make a good impression with every email you send. One way to achieve this is through a professional email signature. However, creating a polished and professional-looking signature can be time-consuming and frustrating. That's where an HTML GmailSignature Generator comes in. In this article, we'll discuss the benefits of using an HTML Gmail Signature Generator, including how it can save you time and effort, ensure consistent branding, and provide a mobile-friendly, professional look. We'll also introduce Hupport, which we believe is the best HTML Gmail Signature Generator available. Saves Time and Effort Creating an email signature from scratch can be time-consuming and frustrating, especially if you're not familiar with HTML or graphic design. With an HTML Gmail Signature Generator, you can save time and effort by automating the process. All you need to
Read more

Step-by-Step Guide to Creating a Professional Email Signature with a Generator

Image
An email signature is a crucial part of any email you send. It's an opportunity to showcase your professionalism and provide relevant information to the recipient. However, creating a professional email signature can be challenging, especially if you don't have any design skills. Fortunately, with the help of an email signature generator , you can create a professional-looking email signature in no time. In this article, we'll guide you through the steps of creating a professional email signature with a generator. Step 1: Choose an email signature generator There are many email signature generators available in the market, but not all of them are equal. You want to choose an email signature generator that is easy to use, provides customizable templates, and offers professional designs. Hupport is one such email signature generator that ticks all the boxes. Step 2: Enter your information Once you've chosen an email signature generator, the next step is to enter your inf
Read more