This month’s newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space.
In this issue
- Neglected Investment Property
- Advantages and Risks of Single Tenant Properties
- How To Perform An Adequate Market Analysis Before You Invest
- How To Get More Tenants In An Over Built Market
- Why Apartments Continue To Be A Favorite Investment
It is hard to believe that someone can totally neglect a valuable investment property like a multi-unit apartment. It happens. The run down property may have been acquired from a seller who did not understand real estate investments and failed to manage it at all. The professional investor can usually spot the low-priced and currently unprofitable income property that can be purchased, then upgraded with some reasonable expense so that it becomes a cash flow property. That property can then be added to the investor’s real estate portfolio or quickly sold for a profit….(more)
Around 25% to 35% of the value of commercial properties are single-tenant properties (STPs). This large percentage means that institutional investors such as pension funds, as well as smaller investment groups must consider this type of investment. There are many uses ranging from office to industrial to retail. They can include office buildings, warehouses, department stores, supermarkets and other retail use. There are advantages and disadvantages in this type of ownership compared to multi-tenant properties….(more)
When a buyer makes an offer on an investment property, it is usually only after a thorough inspection of all of the data that is available on the financial records of the building. Certainly, a good physical inspection is also made. Some investors pay more attention to the data than the structure. The physical inspection of the property could be as important or more important than the rents and expenses. By thoroughly inspecting potential investment property, a buyer may be able to….(more)
When an investment property is located in an overbuilt market, the marketing effort must have good planning and direction. Just throwing large amounts of money into the effort can be a waste. Rather than broad advertising, a narrower action may be required. Keeping the local brokers who specialize in leasing constantly updated about the amenities of a certain building may be the best way to make it more marketable. Here are some other ideas…..(more)
Investors purchase income producing real estate to make money. Apartment properties, as always, continue to be the favorite investment property for many investors. It is possible to reap substantial rental income from a relatively small investment, with a large amount of the purchase price being financed by first and second mortgages. An advantage that apartment property offers a buyer is the usual higher ratio of building to land value that means that more of the capital investment can be depreciated. The depreciation life of residential income property is shorter than other commercial properties. Straight-line recovery for buildings is claimed over a period of 27.5 years for residential rental property vs. 39 years for nonresidential real property…..(more)
