Page 1

What Commercial Property Data is Important to Consider? Investors will use data to assess the trends in the market before buying any type of property. If you are thinking about buying commercial real estate, you should always sit down and review commercial property data before all else. There is nothing worse than making an investment without really looking into the potential of the investment first. If you know nothing about the real estate's performance, you might wonder why the seller is selling and have no definitive answer. Here are some of the pieces of information you should know. 5 Year Performance Trends If the property has already been built, you should look into the 5 year performance trends. A commercial properties differs from a residential property in that the commercial building's value is based on how much revenue and income it generates. The value of a residential property is based solely on comparative reports. If you want property-level information, you need to do business with a firm that will give you the accurate information so you know how the property has been performing in the last 5 years. Failing to do this may land you in hot water. Rent Growth Trends When you invest in a commercial property, you are investing in hopes of being able to raise the rent from time to time. As there is a higher demand for commercial real estate in the area, you can raise the rents and still pay the same mortgage. You should always look for rent growth trends when you are reviewing commercial property data. This way, you know which years the rent went up and which years the rent stayed level. Submarket Analysis Metropolitan areas are generally the best areas to invest. This is because most businesses want their offices to be located in a busy area that will give them greater visibility. You should make sure to ask for data on the metropolitan area and the submarket so you understand rental and vacancy rates in that area. These reports will also include information on new construction projects and an overview of the current and past conditions. These are just a few areas you should focus on if you are going to invest in commercial property. Make sure you get the information from a reliable firm in the real estate sector. Once you review all of the data, you need to decide if now is the time to buy. Do your research and you will feel less anxiety over the investment. Additional Information:


Read more
Read more
Similar to
Popular now
Just for you