What Makes A Good Commercial Real Estate Investment?
Short Answer: Cashflow.
Long Answer: There are many factors that make a good commercial real estate investment, including:
- Location
- Cost of Investment
- Zoning
- Parking
- Condition of building
- Amount of usable space
- Potential number of tenants
- Number of existing tenants
- Quality of existing tenants
- Actual revenue
- Revenue potential
- Expansion / Growth potential
- Security
In essence, the items listed above will help determine if a commercial property is a good commercial real estate investment. When you factor all these items together, if there is positive cash flow, that is what will truly determine if the commercial property is a good commercial real estate investment.
Once you determine if the commercial property is making money, the next step is to determine how much of a profit it can make. Can you make more money by maxing out the number of tenants in the commercial property? Or, can you make more money by upgrading the fixtures in and around the building in order to generate higher rents? Perhaps you can do both? After working with your commercial property broker, he or she will help you determine what options you have to boost the level of cashflow your commercial property can generate.
Want to know what makes CMG special and unique in the world of commercial real estate investment? We own several commercial real estate investments ourselves and we know what to look for when seeking good investments. Plus, the CMG team offers the best property management service and will do whatever it takes to earn the trust and respect of our customers, vendors, investors, and business community. When you choose CMG, you can rest comfortably with the knowledge that all of your commercial real estate investment and commercial property management needs are in the hands of seasoned professionals.
Contact Jim Provost and the CMG team today to schedule a free consultation to discuss your commercial real estate management needs: 707.575.5500.