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Commercial Real Estate Investment

By Roger Frost


Commercial property' covers a range of options from office and retail space through to car parks and industrial properties like warehouses and factories. You may be surprised by this, but investing in commercial properties can be quite affordable, sometimes costing less than many residential properties.

Successful commercial property investment is about anticipating market moves, optimising value, cash flow and due diligence. Identifying interesting investment opportunities and maximising sale proceeds is about contacts and market knowledge. Unlike residential property, the costs of maintenance, rates and repairs on a commercial property are paid by the lessee - not the landlord. This means more of the rent you receive goes towards your profit. However, be sure your commercial lease spells out who is responsible for the property's ongoing expenses.

Once you have performed your due diligence and decided on a property you would like to invest in, there are many things that should be done. All the leases should be inspected by your lawyer to establish their length and any irregularities. You should hire a competent Commercial Building Inspector to evaluate the property.

There are many items that require inspection by a commercial property inspector and review by your lawyer regarding existing leases. You should be fully aware of any existing "favorable clauses" prior to purchase. Checking with your local building department is also a good idea to obtain information about any previous building permits or "orders to comply" that might be outstanding.

Inspection or Commercial Buildings: The inspection is defined as the process of an inspector collecting information through visual observation during a walk-through survey of the subject property, conducting research about the property, and then generating a meaningful report about the condition of the property based on the observations made and research conducted by the inspector. A commercial inspection requires the inspector to make observations, conduct research, and report findings.

Knowing Part 3 Large Buildings - Classification and Construction is vital to beginning any inspection. The OBOA Course of Classification and Construction addresses large buildings and includes the following: building classification; separation of major occupancies; building area and height; streets; building size and construction; occupant load; fire separation/fire-resistance ratings; firewalls; closures; Ontario Building Code requirements; fire stopping; provision for firefighting; and mezzanines and interconnected floor spaces.




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Ditulis oleh: Unknown - Friday, November 9, 2012

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