Commercial real estate: the demand for such properties is growing. What to look for when choosing to buy
Demand for commercial properties is growing in Russia. At this stage, industry experts say, investments in such acquisitions are considered more promising than investments in residential real estate. At the same time, experts, of course, warn that
At the same time, there are, of course, parameters and points that should be taken into account when selecting commercial objects for acquisition. The main nuances are:
Criteria for choosing commercial real estate
The choice of commercial real estate depends on many factors, and these can vary depending on the specific needs and type of business. The list of fundamental ones:
- location: The location of a property is literally critical. This point includes its accessibility to clients and employees, proximity to transport routes and other infrastructure. The main thing: the location must meet the needs of the business in terms of supporting its activities.
- budget: And here we are talking not only about the initial investment that will be at the time of purchase. It is also important to calculate the prospects: the costs of maintaining and managing real estate, in particular.
- property type. It is not always justified to buy a premises that is clearly unsuitable, but in the hope of “rebuilding it”, while supposedly saving money.
- size and layout. The area and layout of the premises must meet the needs of the business. It is necessary to take into account the number of jobs, storage, retail space and other factors.
- technical condition, including electrical, plumbing, heating, ventilation and air conditioning, plays an important role. The property must comply with safety standards.
- planning and urban planning regulations: It is necessary to ensure that the property complies with planning and urban development regulations and also has the necessary permissions for use.
- parking and amenities: Availability of parking for customers and employees, as well as amenities such as restaurants, cafes, etc., may be important for some types of businesses.
- long-term prospects when choosing real estate. For example, long-term rent or the possibility of expansion. And, of course, it is necessary to take into account the possibility of selling the property if necessary.
- reputation and history: Information about previous tenants and the history of the property can provide insight into the condition of the property and potential problems.
Buying commercial real estate — is it worth investing in this kind of property?
Whether the decision to invest in commercial real estate is worthwhile depends on a number of factors, including specific investment goals, budget, risk tolerance, and knowledge in the field. Commercial real estate, experts emphasize, can be a good way to diversify an investment portfolio and diversify sources of income, but it can also be associated with a number of risks. Here are some factors to consider when considering commercial real estate investment:
- investment purpose: It is worth defining exactly what goals are being pursued. For example, commercial real estate can provide rental income as well as capitalization opportunities when the value of the property increases over time.
- knowledge and experience: Understanding the commercial real estate market and knowing how to manage the property can make a significant difference in the success of your investment.
- liquidity: Commercial real estate may be less liquid than other types of investments and may take time to sell. For all its external attractiveness.
- various types of commercial real estate (offices, retail facilities, industrial facilities, etc.) have their own characteristics and risks.
Before investing in commercial real estate, it is recommended to conduct detailed research, consult with real estate experts and develop an investment plan. This will help you make an informed decision and maximize the potential return on your investment.
Commercial real estate — which properties are most in demand
According to experts, at the moment the greatest demand is for commercial properties such as:
- small offices (both to use and rent out).
- small retail premises «for shops». And here, among the long-term “persistent favorites” are squares in “dormitory” areas. True, such properties are not often put up for sale in both large and small cities.
- warehouses. But here is a caveat — they must be “packaged” (communications, surrounding infrastructure, etc.). The purchase of such objects, but “in an open field”, is practically not in demand.
- specialized (ready-to-use) premises — for pharmacies, clinics, cosmetology, dental, etc. offices.
As for the cost of commercial real estate, the spread in “price tags” is quite large. And from the point of view of direct prices of squares as such, and from the point of view of determining the cost policy depending on the location (city) of the premises.
So, if for 40 million rubles in Moscow or St. Petersburg you can buy an office with an area of only 120 sq.m., then in the same Kovrov (Vladimir region) for this money you can become the owner of a recreation center with buildings, corresponding infrastructure, landscaped territory etc.