It is true that investing in a commercial property is not an easy task. However, it should not give anyone sleepless nights. Purchasing your first commercial industrial property need not be a daunting task. You only need to have some basic knowledge and overcome the myths surrounding commercial property. For example, if you want to invest in a business centre in Noida, then you need to find out everything about the area. Do not put your money in an area without researching the same.
Factors to consider before investing in a commercial property
Location is important
Location is a critical element while investing in a commercial space. Generally, commercial spaces give revenue via two avenues— rent and capital appreciation. Both these aspects are heavily dependent on location. When it comes to locations, opt for the one with less vacant spaces. This in a way implies that supply is adequate and there is less chance of tenants vacating the property. This eventually results in higher rents and capital appreciation.
If there are two buildings in one location, then the one which is better-equipped in terms of features and infrastructures will always get the first occupant. At the same time, such a building will fetch higher rents, better tenant retention and higher capital appreciation. It also becomes easier to draw good tenants i.e. prestigious clients who will pay anything to occupy such spaces. So, if you are eyeing a property in a business centre in Noida, then choose the building which has all the facilities such as spacious lifts, classy façade, metro access etc.
Quality of tenants
A good tenant is capable of multiplying the value of a commercial property. So, choose renowned entities and avoid unknown companies. The advantages of having good tenants are that they pay rents promptly, offer higher deposits, stay longer and enhance the image of the property.
Adequate parking space
Parking space is very important. Despite a good public transportation system in India, a big majority of the people use their own vehicle. So, it is better to have good parking space in a building. A renowned or quality client will never show any interest in owning a space in a building which does not have adequate parking space. So, invest in a building which provides ample space to accommodate vehicles.