The Factors We Need To Consider While Investing In A Commercial Property
Commercial properties are an entity that’s always in demand. Especially in the big cities, that are always generating new business opportunities and drawing in more people from out of town. Chennai is no different. Even people who are looking to venture into the startup scene, are looking to invest in a commercial property for sale in Chennai.
Commercial properties require a fair amount of research before investing in, however. You may think that you have experience with residential investments, and therefore will be able to approach residential investments with ease. The truth is that commercial property investment is a whole different ballgame. If you’re looking to invest in commercial property, certain factors must be accounted for, before you foray into the field.
Let’s take a closer look at the factors one-by-one:
1. The Time Factor
Commercial properties require attention and time to develop/maintain compared to residential properties. Since it’s a commercial establishment, it needs to have proper upkeep to maintain maximum profitability. If you’re looking at office spaces for sale in Chennai, for example, you need to take time out regularly to oversee things for your office, even after it’s set up.
2. The Location
This is a factor that’s common between residential as well as commercial properties. For the latter, however, it is vital because commercial properties need to be easily accessible or centrally located to draw in the maximum number of people to them. Commercial properties located near residential hubs tend to be very popular. SPR’s Market of India is a prime example of this, being situated in SPR City itself and closeby to trade hubs like Sowcarpet.
3. The Interiors/Aesthetic
The commercial properties for sale in Chennai are wide-ranging, from single kiosk-like shop spaces to an entire wing of a shopping complex. Whatever the size, one has to ensure that the site has provisions for the basic amenities like power and water, before entering any agreement. Yes, you will have to bear the cost of the fit-outs, so you must check up on the basics beforehand.
4. The Overall Building Quality
As an extension of the previous point, it’s also important to scope out the commercial building/complex in general. If you’re looking to buy a commercial shop space for sale in Chennai, put yourself in a customer’s shoes: Would you walk in, knowing you’ll get value for your money? Properties that look premium and swanky are guaranteed to bring more business opportunities to them. Comparatively, they do cost more, but when you’re investing in a commercial property, you should be prepared to shell out either way.
5. The Right Time to Invest
Like with any other real estate property, commercial shop spaces for sale in Chennai are also subject to rate fluctuations from time to time. For commercial properties, this is heavily reliant on supply-and-demand. For example, SPR’s Market Of India houses 11 micro-markets, with provisions for 5000+ offices and shops. If there is a higher number of units available than the demand for them at any point, then the rates will dip, thus becoming the optimum time to invest.
6. The Renting/Buying Quandary
This is a question whose answer depends on your current financial situation. Even more so, as commercial properties involve a sizeable amount of financial investment. If you can afford to do so (both in terms of loans as well as proper funds), then buying a commercial property is the better option in the long run. It offers more flexibility for you in terms of how you run the place. If it doesn’t fit your wallet, however, go for the safe option and take a property on lease, at least for the time being.
7. The Leasing Story
If you’re buying an office space for sale in Chennai, you might want to lease it out to businesses that are looking to set up shop in a prime location in the city. Always make sure that the tenant is being upfront about advance payments and other paperwork. An area to pay attention to is the security deposit. Usually, the tenants have to pay up to a year’s rent as a security deposit. If they are trying to negotiate too hard on that, they may be having financial issues, which could cause rent hassles for you as a result. There are many similar factors to consider while leasing out your property.
8. The Added Benefits
If you’re investing in a commercial property, keep track of all the other facilities that you’re gaining access to as part of the deal. For example, at the Market of India, SPR offers logistics and warehouse support for all your business operations. Facilities like these are a definitive value-addition to your investment in a commercial property.
There are many more intricate factors associated with locking down a commercial property for sale in Chennai or elsewhere. This set of pointers is a good starter-pack for you in your commercial real-estate campaigns. Plan well, and seize the right property!