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Property Data to Review Purchasing a commercial property can be a great investment as it could provide you with additional monthly cash flow and allow you to build long-term wealth. While buying a commercial property could be a great investment option, you need to spend some time researching each property that you are considering. When analyzing a property, there are various pieces of property data that need to be analyzed. The first piece of data that you should look for when looking to buy a commercial property is the financial performance of the property. In order for you to receive a strong return on investment, the property will need to generate cash flow each month. To determine how much money the property could make, you will have to review historical operating statements and rent rolls and also read the current leases in place. Based on this information, you should be able determine what income will be derived from the property. If you are taking out a mortgage to purchase the property, you will need to factor that information into the costs of the property as well. Another piece of data that you will have to review are the condition reports of the property. When buying a property, you will need to have the property inspected by an appraiser and an engineer. The appraiser will provide you with a valuation estimate of the property, based on the current performance of the property. The engineer will provide you with a full detailed report about the current physical condition of the property. The engineering report will also tell you how much money will need to be spent to fix any deferred maintenance. This information could then be used to negotiate a credit with the seller of the property. The third piece of data that will need to be analyzed is the current market data of the property. Be sure to read current market data reports, which should include information regarding the current rental and vacancy rates in the area. If you notice that the rental rates in the market have been declining and vacancy rates in the market have been increasing, it could be a sign that the market is getting worse, which could lead to a strong deterioration in value. When reviewing market data, you should also consider factors that could affect the market conditions. This could include the development of a competing property, which could force down potential rental rates. More Ideas: