What Are Must-Have Features for Commercial Housing?

What Are Must-Have Features for Commercial Housing?
April 1, 2021 No Comments Business, Life, Real Estate Ritika Ghost Content Writer

Commerical real estate refers to properties used for business-related or income-generating purposes. Such properties are leased to tenants who will perform income-generating activities. The four main categories of commercial real estate are office space, industrial, multi-family rentals, and retail space. Examples of income-generating activities include storefronts, hotels, restaurants, healthcare facilities, and office space. Investing in commercial properties is a great way for investors to earn both rental income and capital appreciation.

Find the right location.

The Golden Rule of real estate is location, location, location. You want to invest in a commercial property in an ideal location with strong market fundamentals. The right location shows positive growth projections, sees high foot and vehicle traffic and has potential for future residential development. Consider the location through the eyes of your future tenants. Is the property in an area that tenants can successfully do business and will want to lease long-term?

Commercial real estate investment requires far more investor capital than residential real estate. Some investors opt to diversify their portfolios with indirect investments in publicly traded real estate investment trusts (REITs). There are several types of loan products a borrower can explore to finance a property purchase. Each loan type comes with different interest rates, origination fees, loan amounts, and monthly payment options. It’s important to go through the preapproval process before shopping for a property. Lenders will use your credit score, debt to income ratio, amount of down payment, and the property type to offer a loan amount and interest rate.

Fixed home loan rates feature a fixed interest rate for a fixed period of time. A lower rate means manageable monthly payments and the chance to save money in the event rates rise. Adjustable-rate mortgages can have a lower interest rate one month and a higher rate the next, which results in fluctuating monthly payments. The easy way to make sense of the different types of loan products is to compare a range of lender options with iSelect.com.au.


Tenants want a property that meets their needs.

The physical structure of the property may check off all of your feature boxes, but it needs to meet potential tenants’ needs, too. Notice how much parking is available and how easy it is to access the property. Will tenants have convenient access to public transportation? Will the property stand alone for a long time before other development projects begin? Whether you intend to run the building or hire a dedicated property manager, tenants want a security policy in place given a large amount of foot traffic the property will see.

The traditional mailbox is ideal for the daily mail, but when it comes to parcels, delivery services often leave them with the front desk. Many apartment buildings feature package management systems that simplify the process of parcel delivery and pickup. ButterflyMX offers smart package lockers that make it safe and efficient for couriers to make deliveries.

Package locker compartments can be assigned to tenants who can open the locker with a unique PIN. Some parcel locker systems use unassigned compartments and send email notifications to tenants with a PIN so they can pick them up at their convenience. Smart lockers offer residents secure, on-demand access to package deliveries while saving your building staff time. ButterflyMX recommends package rooms or package lockers for multi-occupancy apartment buildings to create a better experience for residents.

Adaptability is key in commercial real estate.

A smart investor performs due diligence on every potential property before making an offer. Gather information about the property’s previous returns, location, and rental yield and use it to make an informed decision. Ensure the property complies with local, state, and federal regulations. Educate yourself about the current and future zoning regulations to ensure the building can adapt to zoning changes. The condition of the building is also important. An industrial property must be structurally sound and free of chemical spills and underground fuel storage areas. Fixing up a property to attract tenants is likely on your to-do list, but removing asbestos-laden materials is expensive.

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When considering a piece of commercial real estate, consider a property with the right location that meets future tenants’ needs and is adaptable to future developments.

About The Author
Ritika Ghost Content Writer I am able to published fiction, nonfiction, article and grant writer with over five years of experience. In articles have covered everything from business IT, to Pagan practices, to self-help, to various academic subjects. I blog on a variety of subjects, from spirituality to chronic illness. In fiction I cross genres quite easily and have published several speculative fiction stories. I am also an experienced ghostwriter and helped a large homeless healthcare nonprofit renew their grant yearly for over a decade. I am organized, flexible, and have never missed a deadline. References available.

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