Seek help from property management company. Be careful with the initial deposits and lock-in periods. When a tenant offers less than this period it means that they could be looking at a short-term option or have cash flow issues. Security deposits in commercial properties can vary between 10 and 12 months’ rent.

The longer the lock-in, the better it is for the investor. There can also be a lock-in period (generally 3 years) during which the tenant cannot vacate the property. Structures are like 3+3+3 or 5+5+5 meaning 9-year (or 15-year) lease with escalations every 3 years (or 5 years). Understand how the lease is structured and know the inherent risks which are involved because Commercial lease structures are different from residential lease structures. Other things like interior designs are done by the tenant as per individual taste. Usually, commercial properties are built like a bare shell covered with four walls. This is the ultimate way to reduce the risk and maximize the returns. Try to invest in various fields like selecting optimum property size to multiple property investments. The key point in real estate investment is diversification. These all parameters can affect the scope for growth. Scope of growthĬonsider the factors like demand vs. Look for those buildings which have nicer looking lobbies, more elevators, higher ceiling heights and better views. Look out for a LEED Gold/Platinum certification, because standard qualities will fetch the investor higher rents, better tenant retention and higher capital appreciation.

Quality of the propertyĬhoose those properties which meets all the standard qualities. Location should be close to other commercial hubs.Ĭ) The land on which the property is constructed should be free from legal disputes, and environmental concerns.

Location can be wisely chosen by considering below pointsĮasily accessible via various modes of transport and it should attain some Because the rent andĬapital appreciation are heavily dependent on the location. Location which you choose for investment is very important. Projects in Pune to earn much higher returns from these. Before makingĪny decision, consider some set of rules/techniques before investing in a commercial Is simple as long as you’re acquainted with the basic processes. To invest in commercial real estates? commercial real estate investment

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