Three Things to Consider When Building New Commercial Buildings
While the real estate market often fluctuates, the commercial market has a tendency to remain hot while the residential market flounders. When you invest in a commercial property and build that property from scratch, you have more freedom to design that building. You might create an office complex that has room for multiple companies, a strip mall that has space for several retail stores or even a mixed use space. Before you reach for your wallet and start construction, there are some key things you should consider.
Type of Tenants
Before construction starts, you need to consider the type of tenants who will use that space. Do you want an office complex that has individual offices inside, or do you want a strip mall that will have two or more storefronts? You also need to think about the amount of space that those tenants might want. Building a complex that offers 2,000 square foot spaces will turn off those who need more or less space. You may decide on an open layout that lets your tenants decide on the amount of space that they need and can afford.
Features and Systems
The type of features and systems that you provide may determine the tenants who rent from you. Retail stores often need a storage space in the back for merchandise and a larger retail space for merchandise. Office tenants may want an open layout that lets them build their own cubicles or a space that has a receptionist area in the front. You’ll want to look for help from companies like Womack Machine Supply when it comes to installing some new systems. Engineers working for those companies can help you create high pressure systems and other systems that will appeal to renters.
If you want to get a good return on your investment, you should always look at location. Far too many people purchase land and put up commercial buildings in places that do not need one. Look at the surrounding area to determine if there is a lot of competition or a complete lack of competition. A complete lack of competition may indicate that a commercial building will not do well in that area, while too much competition will leave you struggling to find tenants. Before you invest in a commercial building, look at features, systems, potential tenants and the location.