When investing in real estate, there are many options available to you. One such option is commercial real estate. This type of investment differs from residential real estate investment and can be quite an interesting venture. Before you begin your investing, here are a few things you should know.
Understand the Fundamentals
Before getting started, it’s important that you know the business. One of the first steps of investing in commercial real estate is knowing what type of property you want to invest in. There are 5 main types: office, retail, industrial, multi-family, and special use. You can own anything from an office building to a strip mall to a warehouse. Do some research to see which type appeals to you. Knowing the market can also help you determine which would be a safe investment.
One of the major benefits of commercial real estate investing is that it has lower risk. Commercial investing is perceived to be more difficult, so you will have less competition. You can also depend on higher income, longer leases with your tenants, and more cash flow.
When financing your investment, there are many types of loans you can choose from. For example, there are permanent loans which are similar to a mortgage on a house. If you’re waiting for a long-term loan or planning to refinance, you can use a bridge loan which is a short-term loan. Another common type of loan used by real estate investors is hard money loans. These loans are not offered by traditional lenders, but by private companies. These loans can be useful if you don’t intend to hold a property for an extended period of time. Your commercial real estate venture may qualify for SBA financing. There are even different types of SBA loans that can be used for a variety of business-related ventures.
Get a Partner
As you’re starting out in investing, it may be wise to begin with a partner. Having a partner can be beneficial in many ways. If you’re looking to get more experience, then find a partner who knows investing. Having a partner also makes it easier to obtain loans. Additionally, you each bring different skills to the table. While it can have its challenges, starting off with a partner can help you get your bearings.
Commercial real estate investment is a wonderful option if you’re looking for a low-risk and profitable investment option. Before you begin, make sure you understand the basics and the different types of investments. Make sure you’ve done your research so you can be the most successful.
Ready to invest in commercial real estate? We can help you achieve it by building you the perfect property to invest in. Contact us to get started.
It is widely understood by anyone who operates a commercial property that in order for that property to be profitable, it must be kept up and well maintained. One of the most important areas for the maintenance of a commercial property is pest control. Pest control is an issue that virtually all commercial properties will face at some point as there are a number of different types of pests that can invade these spaces. Regardless of the fact that is difficult to keep all forms of pests out of a commercial property, there are some simple steps that can be taken in order to ensure that pests are generally kept in check at your commercial property.
Take Out the Trash on a Regular Basis
This might seem obvious, but the fact is that the garbage that collects in your commercial property can be one of the most enticing places for unwanted pests to show up. Ensuring that the trash is diligently taken out on a regular basis is a simple way to be proactive in helping to prevent the arrival of pests.
Keep Food Off the Floor
Making sure that any food that ends up on the floor of your commercial property is promptly cleaned up is a great way to be proactive in the area of pest management. Letting bits of food build up on the floor can be a sure way to attract the unwanted presence of ants. Different species of ants are attracted to different food, so the best solution is to always clean up quickly after any food has been consumed at your commercial property.
Clean All Potential Breeding Grounds for Pests
Taking out the trash and keeping the floor clean are two of the obvious areas to keep clean, but another part of pest management at your commercial property is to take care of cleaning any other areas that could attract pests. Keeping drains clean is an important part of pest management. Another important factor is to clean any areas where food is served.
Utilize a Quality Pest Control Service
Partnering with a reputable pest control service is another great way to be proactive about your pest management needs with your commercial property. Having a professional pest control service come by and do routine checks on your facility is a great way to catch any problems before they become big issues.
These steps are simple ways to keep pests to a minimum at your commercial property. It is all about being aware of the situations that can attract pests and avoiding those situations. Adding in a good commercial pest control service is also a great way to be proactive. Though extermination services can sometimes become inevitable, a little bit of pest control management effort can go a long way toward keeping your commercial space pest free.
Professional commercial construction and management are the keys to having a successful project. Talk with Pride One Construction today about your next commercial construction project!
Investing in commercial property and commercial property construction is a great way to make a living that requires a whole lot of responsibility. When you purchase a property whether there is an existing structure or you’re going to have one built, you need to make sure everything is up to code for the tenants. Make sure you are paying close attention to these safety measures.
Earthquakes are dangerous phenomena that are undetectable. The only way to prepare for one is to have your building designed in a way that offers ample protection against earthquakes. It needs to be built with strong materials on a sturdy foundation. There should also be strong furniture that people inside can protect themselves under in the event of an earthquake. Earthquake survival kits containing things like first aid supplies and water are also highly desirable. Though earthquakes typically last less than a minute, their intensity can do significant damage.
It only takes a flame and something flammable for a fire to spread. With a good alarm and fire suppression system, you can stop fires before they can really do damage. In certain cases where traditional water-based sprinkler systems aren’t an effective means of fire suppression, a special hazard fire suppression system can be utilized to avoid dangerous, damaging, and impractical consequences. Environments such as data centers or healthcare facilities require specialized fire protection systems for the safety of assets and people within an area. People in your buildings should be educated on fire safety, including how to evacuate in a calm manner. For businesses, there should be a diagram detailing how occupants can make their way out of the building. There should be at least one full fire extinguisher that can be easily accessed, more if it’s an especially large building. In the case of a particularly large fire, people need to get out right away and not try to fight it.
Electricity is something that should not be taken for granted, both for how useful it is and how dangerous it can be. An electrician needs to do any needed repairs, regardless of how simple they seem. If you attempt to do it yourself, you may not meet the safety standards, which can just make the problem worse. Unprotected wires and water damage to electrical equipment are just a few things that can put people in danger. Since electrical arc flashes cause 2,000 injuries annually, which can include severe burns or even death, it’s vital that you take steps to ensure electrical safety on your property. When you hire an electrician, make sure that they are following all the rules of the Occupational Safety and Help Act (OSHA).
Advancements in technology and safety standards mean that people can live and work more comfortably than ever. You need to do your part as a building owner and make sure that everything in your buildings is how it should be. If you aren’t maintaining your properties or proactively developing it properly and protecting them against potential disasters, you might witness them falling apart.
For all your commercial construction needs, get in contact with Pride One Construction. We have years of experience and will manage every part of the construction so that you can focus on what’s important to you.
According to The Balance – Small Business, whether a property that you own is occupied or not, it is your responsibility to make sure that it is properly secured. If a person gets hurt while on the premises, he or she could file a personal injury or premises liability lawsuit. How do you know if you are properly securing your properties?
How to Protect Occupied Properties
First, make sure that your tenants have renters insurance, whether it’s their own or a policy through your property manager. This helps protect you from liability in case the tenants’ belongings are destroyed in an accident. You will also want landlord insurance to help protect you from major issues that could turn your investment into a drain.
If someone lives or works in a apartment complex, commercial building, or other property that you own, make sure to have a secured entrance. This should consist of doors that only open after a card is swiped or a password is entered. Furthermore, whoever accesses your building should have the chance to change a password or deactivate a key card at any time.
It may also be a good idea to have a reception area that a person must enter prior to getting into an apartment or commercial office. This makes it easier to keep track of anyone who enters the property. If anything happens while that person is on the premises, you can determine if he or she was allowed to be there and if a tenant was responsible for ensuring that person’s safety.
How to Protect Unoccupied Properties
While you may put less effort into protecting vacant properties, it is still important to do so. You could choose to have a property management company send people over on a regular basis to inspect for trespassers or other evidence of unauthorized entry. You could also put a security system in place that will alert police if anyone is in a home or a commercial building without permission. According to ProVigil Security Systems, “By using special recognition software that can automatically identify and respond to intruders, remote security guards can actively evaluate potential threats as they occur, and respond appropriately—by contacting monitors, activating remote deterrents, or alerting the local authorities.”
If a vacant property is being remodeled, there could be large equipment or other valuable tools left after work is done for the day. This could make it more likely that a person would want to come onto the property. It could be especially tempting for young children to enter a premises to try to ride a tractor or play games with friends in a setting where they think no one is watching them. In addition to a security camera, a locked gate or a no trespassing sign can be used to limit your liability.
Whether your property is occupied or not, it is critical that you provide security for it. Doing so can either prevent a lawsuit from occurring or reduce the chances that you are found liable for damages if one is filed by an injured person.
If you have a vacant lot that you have been keeping secure for awhile, talk to our professionals to see what your options are for profitable buildings to grow your investments.
The healthcare sector has changed dramatically over the last decade due to legislative changes, demographic shifts, and economic cycles. Finding the right location for your business practice has become a lengthy process that requires a survey of the competition along with various studies involving traffic counts, visibility and access. Whether you plan to lease or buy the property outright, you will be dedicating resources to build-out and set-up, which are major startup costs for any practice. That said, it is crucial to choose the most appropriate site based on your existing operations and future plans.
Choosing the Best Location
Medical office buildings have unique location requirements. These properties are typically found near major medical facilities such as hospitals and outpatient surgical/non-surgical units. Sites that are close to university campuses are also highly favored by medical practitioners because of the presence of advanced infrastructure, including communications technology and transportation. Additionally, the campus population is a good source of research volunteers, employees, and consultants.
Determining Ease of Access
Medical facilities are destination businesses, which means the office is not dependent on pedestrian traffic. However, ease of access is a major concern especially for patients who rely on public transportation to get to their appointments. The site should have adequate connections to the main streets, and parking must be available especially during peak hours. The facility should have an option for overflow parking and valet service for patients with physical limitations. Access for patients with disabilities is mandatory in all states, so make sure that existing structures can be renovated and retrofitted to comply with access laws.
Establishing a One-Stop Healthcare Facility
Medical offices cluster in a particular area for enhanced efficiency when it comes to delivering healthcare services. Medical districts may be anchored by a hospital or university, and ancillary healthcare services are offered by providers at their own location. It is advantageous for both patient and provider to be in an environment where any additional healthcare services are accessible within a short distance. Standalone healthcare locations may be viable when the needs of a certain community justify the maintenance of a satellite office although this is no longer a widespread strategy. In addition to added convenience, owning multiple practice locations is a smart way to protect your assets in the event of a medical lawsuit.
Establishing an office for a healthcare practice is a lengthy and expensive process. It is a huge commitment of time and resources that may have you wondering when to rent space in an existing building and when to build your own office. The answer depends on whether the space meets all your predefined expectations, including room for expansion and improvements as your practice grows.
Pride One Construction is evolving the commercial real estate development and construction industry. Let us take your health care construction project to the next level!
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You are an investor, and you have been considering getting into the commercial real estate game. You have already made money on the residential side of real estate, but you’re interested in expanding your investing scope to more lucrative opportunities. While this kind of real estate venture can generate lots of cash flow, there are some issues you should be aware of before jumping in with both feet.
Running the Numbers
Image Credit: World Property Journal
When purchasing a commercial building or small stripmall-style property, you will want to take considerable time to go over the numbers of such a purchase. Will the cost of the property really justify the monthly generated income stream. Equally important, how long will it take to pay the property off—even if there are already renters paying an established monthly income rate. You have to know if this commercial venture is really going to be worth the investment.
Dealing with the County
Depending on what kind of commercial real estate you are investing in, there may be hidden licensing fees and county compliance issues that you must address along the way. Sometimes these issues are a matter of paying a fee to get the ball rolling. Other times, there are inspections that must be carried out, and you may even need permission from the county if laws have changed prior to you becoming the owner. There’s also certain taxes associated with buying and selling investment properties like commercial locations or rental properties. There are ways of getting around the taxes, but not so much the inspections. Getting in touch with the county and knowing this information ahead of time is key.
When You Are the Landlord
Image Credit: BizCommunity
Being a landlord for commercial real estate can be a bit more complicated than being a landlord in other real estate ventures. This time around, you are renting to restaurants, retail stores, and a variety of other shop owners. The negotiations and contracts for this kind of real estate process are more entangling, and they require developing a more amicable relationship to ensure tenants remain long-term, loyal rent payers.
Image credit: Tropitone
When it comes to sinking a huge investment into commercial property, you must make location a primary concern. Whether you are using a building for your own purposes or renting suites out to tenant businesses, you must make sure there is adequate foot traffic and visibility so that you will attract customers and clients. Otherwise, your location could kill any businesses trying to operate out of your commercial property—even your own. You’ll also want to choose a location that compliments the look and function of your property. For example, if you are investing in a hotel and spa, then you’ll want to ensure that your outdoor scenery supports a relaxing experience.
Image credit: St. Louis Corporate Housing
Insurance is always a factor with any type of investment in commercial property. You would not want to risk owning such huge assets without having insurance to cover them. Before you purchase commercial property, you will want to be certain of the insurance ramifications that such a purchase entails. You will need liability insurance, flood insurance, in certain cases, and insurance to mitigate the costs associated with other types of potential damage to your commercial investment.
Going commercial with your real estate interests can turn into a huge investment opportunity. There is a lot of money to be made as the owner of commercial properties. The business applications are virtually endless, and so is the income potential.
When you’re ready to start the construction process, contact us at Pride One Construction to schedule a consultation.