MARTIN LANDIS

Managing Member (CEO) of Landwin, LLC

Just like with residential real estate if you’re looking to invest in a commercial real estate opportunity there are numerous factors to consider. The demographic of the area you’re looking into is just as important with a commercial property and in some ways can be an even more vital factor to keep in mind. If you’re trying to invest in commercial real estate see why demographics of a given area is one of the most important things to consider along with other crucial factors that shouldn’t be overlooked before going forward with your investment.

Impact of a Demographic

Disposable Income

If you’re investing in a commercial property then you’re going to first want to consider the disposable income in the area. If you’re looking at investing in a property in a low-income area then chances are you won’t want to invest in a business with expensive products for sale or a high-end shopping center.

Industries

Young or inexperienced investors may not consider nearby industries as an important part of a demographic but that could be a costly oversight. For instance if the area you’re looking into primarily relies on farming and agriculture as their main industry then investing in an IT company for the area is likely a poor decision that will cost you more in the long-run.

Land Availability

Another important factor to consider is the land availability in your area. Areas with a higher amount of available land will often result in less lucrative commercial real estate opportunities whereas when demand is high but the supply is low, you’ll see an increase in value for residential and commercial properties alike.

Other Important Factors to Consider

In addition to an area’s demographic these are just a few other things to consider before investing in a commercial property.

Physical Condition

If a property is in poor condition then it may not be a complete deal breaker but you should be able to find out how it got that way. When you consider the past maintenance and upkeep needs of a property 10 years ago you can project the likely maintenance needs going forward which can help you determine resale value or rent.

Physical Location

While location is always an important factor to consider there are overlooked particulars that you should always factor in including:

1. Distance from potential clients, customers, end users and suppliers
2. Property accessibility and ingress/egress
3. Transportation connectivity required for building use such as roads, railways or water

Support Services Available

Every commercial property needs some type of support services to run operations and protect value. Make sure to consider available nearby security companies and property management so that you can maintain a high resale value down the line.

Current Litigations

Always check to make sure that a commercial real estate investment doesn’t have any existing or prior litigations against it. You don’t want to take on someone else’s previous mistakes and deal with the high costs and hassle of fixing their problems.

Cost of Maintenance

It costs money to run a commercial property and when you consider all of the brokerage and legal fees along with the costs of support services. Make sure to get a realistic idea about what a given property will cost to run and maintain at a high level before purchasing or investing.

Commercial Property Valuation

Further Protect Your Investments with a Professional

No matter if you’re buying, selling or leasing a property you should always have a trained and experienced professional helping you along the way. At Landwin we have a proven track record of taking your investment and helping it grow. For decades we’ve offered our clients a safe way to invest in commercial real estate while taking into consideration all major factors like demographics of a given area and condition and location of a property.

Whether you are new to commercial real estate investing or you are looking to expand an existing portfolio let our experts assist you. If you have any questions or would like to schedule a meeting with one of Landwin’s experts then please give us a call today at (818) 783-4343. We’re here to help you get in to commercial real estate investing as safe and as easily as possible.

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Commercial Property
Martin Landis

Hello everyone! It’s Martin Landis here. In my role as the Managing Member (CEO) of the real estate advisory firm Landwin, LLC, I draw upon my many years of business experience in real estate and marketing.

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