Choosing an Ideal Commercial Property: 5 Steps to Consider

Investment in a commercial property could be the best option for multiplying wealth in a shorter time. However, deep research about the property is needed, otherwise, it can turn all your plans and may return huge losses. Commercial property is a property where office spaces, retail shops, food courts, warehouses, malls, and industrial real estate are available. It is evident from the infrastructural development in India that it is a booming sector. The Government of India has already planned 100 smart cities in India in the coming years. Being a developing nation, India has a huge scope in real estate infrastructure.

If you are an investor and planning to invest money in a commercial property, you have to go through certain points before signing the deal. There are several factors one should understand while buying a commercial real estate property. Here we have focused on five main things that you must consider before investing in a commercial property.

Select the Right Location

Identifying the correct location is the most challenging job in investment. The first and most important job is to select the right location for investment. Check connectivity or transport options to the property. If there is no proper connectivity, it is not a good destination for commercial use. Also, check for customer footfall in the area. You should visit the area personally, and enquire about the already established business in the locality. You may contact some local brokers or dealers in that particular area to know about the property. Mainly, if we sum up this fact, we can say the following things should be considered during the selection of the property:

• Location of the site

• Area demographics

• Metro and local transport connectivity

• Surrounding area

• Proximity to nearby malls, shopping centres of other key institutions.

In today’s scenario, Greater Noida fulfils the above parameters, attracting investors from worldwide. Owning a commercial property in Greater Noida could transform your life completely. One right investment decision has the potential to elevate not only your life but also generations to come.

Research the Market Dynamics

The real estate market is full of uncertainty, there are new changes, trends and dynamics, which one must consider to analyze which commercial property is feasible to invest in. Hence, before investing in a commercial property, understand these factors that help you choose the right property.

Building Amenities and Real Estate Developer

The availability of amenities like food courts, cafeteria, car parking space, green parks, security staff and connectivity are the key features that increase the value of the commercial space. A good commercial property offers all these benefits, enhancing the overall experience of the occupants and visitors. Secondly, you can check the real estate developer associated with the property. It is crucial to check the market value or reputation of the real estate company. If everything is ok, you can go ahead.

A physical survey of the property is important, it will help you check the locality, connectivity, security and other important factors about the property in which you are investing.

Potential Risk Assessment

Risk assessment of any investment whether it is property or anything else is an important practice. By doing so, we understand the pros and cons of investing in that particular property. The risk assessment practice can save both money and time. The ideal way to calculate the risk factors is to assess the overall performance of the property in the last 3 to 4 years. Secondly, check the connectivity and customer footfall in the area.

Avoid investing in commercial property associated with failing companies and defaulter business owners. Select the tenants with longer lease periods so that your space remains occupied for a longer time. Set the terms and conditions very carefully and mention the annual increment of the tenant fee.

Read Documentation and Approval Thoroughly

To finalize the deal for commercial property, you need to read all the documents thoroughly. Check all legal aspects, mortgage-related papers, planning permits, tax documents, and other important approvals. In this regard, you should seek help from a legal expert. Don’t forget to check the hidden charges listed in the sale agreement like statutory charges, repair charger, etc. It will help you to escape from making huge changes in the future.