If you’ve got the money, one of the best possible investments out there is real estate. Just buy a piece of land and develop it and you can be sure to have a regular income from it. Though residential buildings are the frequent choice of real estate developers, commercial buildings can also give you a hefty profit.
However, building one can be a risky proposition. Here are some tips to ensure that you are doing it right:
Start With a Location
When you’ve got the idea of building a commercial facility, the first step is to find the right location for it. You can’t just choose a spot and decide that is the place where your building is going to rise. Find the right spot for your commercial building by checking how visible and accessible the location is, what are the surrounding buildings, and what can be found in the area. The place you have chosen might not be the best place for it.
For example, if a location is not near a major thoroughfare and provides only marginal accessibility, it might be more suitable for residential or industrial development.
Evaluate and Plan
Now that you’ve got a prospective spot, it is time to sit down and do some hard thinking and calculations. A commercial building is technically a business since you’re building it mainly to collect rent. This means you need a detailed business plan. Start with how much you could be spending on the project, what are your projections for the rent and occupancy, and how much it will cost to maintain it. You might need to reevaluate your budget or change a detail or two, but a business plan for your commercial building will ensure a profit in the long run.
Planning should also involve how exactly the construction plans will go. Will you be the building manager or will you hire someone? What is your target opening date? What will you do if something goes wrong? Proper planning ensures that everything goes smoothly.
Get the Right Permits
Now that you’ve got a plan, you should start getting the paperwork done. For one, you’ll need to buy the property. The next step is to get a permit for the construction. Depending on the local building codes, you may need to present plans or something similar. Note that there are things you can and cannot do without a permit, so be clear on that with the local government so that you won’t have a sudden shutdown in the middle of the construction.
Choose the Right Team
Constructing or commissioning a building in Portland and other cities will involve hiring a team to work on it, from the design to the actual construction. It all starts with a good architect. You need one to be sure that you are getting a building that won’t collapse. You then move on to your construction team. Some contractors can handle everything, from digging the foundation to installing the plumbing and the electrical systems. Look for their certifications and insurance to be sure that you are getting the right people for the job.
Owning and managing commercial buildings are a great way to ensure a consistent revenue stream. This is especially true if you follow these pieces of advice. With their help, you’ll have a building that will be full of tenants for years to come.