The commercial investing industry is more competitive than ever, making it difficult to stand out amongst clients and customers. This guide provides a few tips that are sure to get your commercial building noticed.
Before considering the nice-to-have features that will make your commercial property stand out, make a list of necessities. These are features that your tenants or clients will expect and are nonnegotiable when choosing a property. Some property must-haves to consider include office spaces, residential units, public bathrooms, and a lobby. Depending on the type of unit, you may need other common spaces to satisfy your tenants.
Don’t forget to account for safety must-haves. In addition to the usuals, like fire exits and tornado rooms, it’s also important to follow city and county regulations. Make sure you keep everything up to code, or else you may not qualify for commercial tenants.
Now, it’s time to make a list of the features that will help your building stand out from the other options in the area. Sometimes, it may be helpful to do a walk-through to get an idea of how these buildings are laid out and what type of amenities they offer.
Try to get creative when coming up with unique features. This may include things like a rooftop pool, a common workspace, an on-site library, or a small coffee shop. Residential units with mail delivery rooms or common entertainment spaces can help satisfy tenants. Commercial spaces with meeting rooms or a spacious kitchen are often desired. Other unique features include a fitness center, outdoor entertainment spaces, and natural lighting. You could also consider your ideal tenant and then choose the specific amenities most likely to cater to them. Don’t forget to play around with unique architectural designs when creating a unique project.
Once you have an idea of the must-haves and nice-to-haves in your building, it’s time to make a blueprint. Your blueprint designates space for each unit and feature. It also allows you to account for things like parking, exit points, and public space placements. Many aspiring commercial builders work with a professional 3D architect for this step since the 3-dimensional images can help bring your project to life. This may also mean it’s easier to obtain funding since you have a way to show potential investors and lenders a more realistic view of your plans.
The lender you choose will also significantly affect the project’s outcome. Affordable loan terms may mean you have more money to spend on the architectural details you need to help your building stand out. One of the first questions you should ask any lenders you’re considering is, “How are commercial loan rates determined?” Different lenders have varying requirements and processes to decide how much and on what frequency to charge commercial investors for lending.
Common eligibility factors for loan terms include credit score, down payment, loan length, and professional experience. Certain things can help you qualify for better rates, including previously paid-off business loans, an excellent credit score, a high savings reserve, and previous building experience. Of course, the better the business plan, the more confidence the lender may have in your ability to repay the loan.
Commercial assets can be expensive upfront, especially as you hire architects, builders, project managers, and designers. You’ll also have to pay a lot of money upfront to obtain a loan. It’s important to keep in mind that commercial projects tend to pay out most in the long term. What this means now is that it’s best not to skip certain features or designs that could help your business stand out and save a few dollars. It’s much more expensive to completely remodel a building and add more spaces than it is to include them in the initial design.
Consider ways that you might continue earning on your commercial investment in the future. For example, perhaps you leave the bottom floor vacant so you can rent it out to retail businesses once you fill the top with residential tenants.
Pocketing all the profits you earn from your commercial building may be tempting. However, it’s important to continue reinvesting back into the property. A well-maintained building will help you keep satisfied tenants, ensuring more long-term income. Additionally, part of your investment is the building itself. As you pay down the loan, you’ll earn equity, and keeping up with renovations helps you maintain a high amount of equity.
Whether investing in a multi-family building or a retail project, it’s important to design something that stands out. A well-designed project can help you fill your space with tenants. Customers will also flock to the area, helping your tenants succeed and providing you with even more long-term income.