How to Choose the Right Commercial Investment Property

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How to Choose the Right Commercial Investment
Property
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• Investing in commercial property is a major
  decision that consists of crucial elements,
  including your leasing strategy and the type of
  property you invest in. Not to mention, land
  developments and building improvements. Taking
  all of these elements into consideration will
  help your investment grow.

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• Before purchasing commercial property, you
  must weigh the pros and cons against your
  investment strategy. This will ensure you choose
  the right property for your portfolio.

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Create a Good Leasing Strategy

• Your leasing strategy is a major component of
  investing in commercial property, whether youre
  investing for rental income or capital growth. A
  good strategy is tantamount to excellent asset
  performance. It should leave room for maintenance
  provisions and rental reviews.

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• This will help you remain competitive and
  ensure all improvements are up to code. When
  reviewing the lease, consider whether the asset
  offers opportunities for depreciation, if it will
  impact overall asset performance and if you own
  the fit-out.

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• For more understanding of your lease and the
  terms, you should also invest in good commercial
  property management. Managers like Group Three
  Property Management will create a great leasing
  strategy for and ensure you are aware of and
  understand the major components of your lease(s).

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Investing for Rental Income

• If rental income and cash flow are your
  ultimate investment goals, then you should invest
  in higher yield properties. High yield properties
  are generally those above an 8 rental yield.

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• Yields at this rate allow you to generate a
  sizable rental income, pay for your mortgage and
  other expenses and profit from your investment..
  However, the best commercial property management
  companies in Edmonton will tell you that high
  yields arent the key to finding the best
  investments. In fact, capital growth is the most
  important reason to invest in rental property.

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Investing for Capital Growth

• Not all commercial property types lead to
  good asset capital growth. For optimal capital
  growth, you should invest in certain types of
  commercial property like high-quality retail
  space.

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• However, the location of the space matters as
  much as the space itself. In fact, the location
  and position of the property should be a major
  consideration for investment. Since location
  determines the supply and demand for land, it
  also determines the value of your land and
  property.

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• Capital growth occurs when the value of that
  land increases. However, the value of your land
  wont increase if the property isnt in a good
  location. Just be sure to invest in real estate
  that matches your portfolio.