Are you looking into investing in commercial real estate? Getting started with investments as a beginner can seem like an intimidating and overly complex process. Buying something like retail space, in particular, is a significant investment; thus making it seem inaccessible to all but the biggest investment institutions. However, as Ramesh Nair of Jones Lang Lasalle India states, getting into retail and office real estate is now easier than ever for smaller investors. Although his advice is in the context of India’s burgeoning commercial real estate market, the underlying processes and methods should be applicable all over the world.
Mr. Nair suggests three ways to go about investing in commercial real estate: buy office space from a developer, buy shares of a commercial developer on the stock market and invest in a commercial-focused real estate fund. Another secondary option would be to invest in REITs. Regardless of which route the investor chooses to go through, there is quite a bit of research, planning and consideration that must go into any real estate investment. As per Mr. Nair’s suggestions, some of the vital things to look for are: the viability of the location and possible future vacancy rates, ensuring future infrastructure and population growth in the economy is healthy, developer quality, access to public transit in the general area, a professional lawyer or real estate agent, surrounding amenities that complement the property, maintenance and property tax, lease term and countless other factors. Needless to say, there is a reason for the steep learning curve of real estate investment. However, with some forethought and careful planning, commercial real estate investing can be an exciting, high-risk, high-rewards game.
Source: CNBC Moneycontrol
Source Link: https://www.moneycontrol.com/news/real-estate/commercial-real-estate-guidelines-for-retail-investors_1000373.html
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