Have you recently decided that commercial property development is the direction in which you want to travel? If so, congratulations! Commercial real estate can include office buildings, retail outlets, hotels, industrial and agribusiness. Regardless of which sector you dive into, there are some basics you will need to master in order to successfully develop your commercial real estate. Not quite sure where to start? You’re in luck – in this article, we provide you a guide to developing commercial real estate. Read on to find out more!
- What kind of real estate are you looking at?
The first step is to decide exactly what kind of commercial real estate you are looking at. Depending on who you are working with, each business or realtor that leases you a property will have their own set of unique rules that you will have to abide by. The most common type of real estate that most choose to develop are industrial/warehouse real estate, retail centres and office spaces or buildings. With each type of real estate comes a set of different rules – from whether you have to settle the commercial plumbing and upkeep to whether you will be able to cater to the right market from the space. Knowing exactly what kind of real estate you are looking for will help you save time, get familiarised with rules and so on.
- Failure to plan is planning to fail!
Once you have decided on exactly what kind of commercial real estate you are looking to develop, you need to dive straight into coming up with an organised plan. Planning from the get go will help you avoid any messy situation in the future. Do some in depth research into the location of your chosen property, have a look at the rules to see if you can abide by them and ask people in the area if there are any issues you need to be made aware of. Identify if the location is accessible to the public and look for any other issues that may arise in the future. Identifying any potential problems now will save you not just frustration and headaches, but lots of money in the long run.
- Consider the costs and profitability
Before diving in, it is also advised that you consider the costs and profitability of this big step you are about to take. Establish how much you can borrow, research on how much this project is going to cost you from beginning to completion, and check if it is in line with your profitability scheme. It is always advised to consult a financial planner when it comes to these issues, as opposed to your real estate company as their main aim is to sell you the property – your profitability is none of their concern at the end of the day.
- Time to design!
When it comes to the time where you will really want to start developing your purchase, it is advised to consult and hire an architect who can assist you in designing your property that you want to build on your purchase. Make sure to clearly explain your vision, budget and purpose of the property so that it can be designed and built to your exact needs. Always remember to get your building plans approved and checked for local laws. Hire contractors to make your vision a reality, and request weekly reports from those overseeing the project so that you can keep tabs on the progression of the building.
- Hire a commercial real estate agent
Now that your property is purchased, designed and built to your approval, the time has come to hire a commercial real estate agent. Commercial realtors can assist you in attracting potential tenants for your brand new real estate. A property management team is also advised in order to oversee day to day operations at the site, as well as for identifying maintenance issues, repairs or billings that need to be sorted.
And there you have it! A guide to developing commercial real estate. We wish you the best of luck in this exciting new journey!