North Carolina's commercial property market is thriving right now, with vacancy rates down to 4% from 10% over the past 5 years.
Investing in commercial property is an entirely different beast than residential investing. Luckily, in a city like Raleigh, there's plenty of potential for commercial property owners. That said, you need to know how to tap it if you're going to earn passive income, let alone build wealth from your properties.
In today's post, we'll help you unlock the potential of your property investment with a few key real estate investment strategies. Keep reading, and you'll be able to take a decent property and turn it into a true nest egg.
Perform a Rental Valuation
The key to maximizing property value is finding great tenants and keeping them in your commercial space. Before you begin your search, however, you need to learn more about the market so you can set a competitive rental price that attracts tenants.
Commercial and residential rental valuations involve very similar practices. The most effective method is to examine other similar commercial spaces and what they're charging their tenants. Look at properties of a similar size, function, and location and set your rates in the same ballpark.
Find the Best Tenants
Tenant screening is a bit more involved for commercial landlords. You want to find an established business with trustworthy leadership to rent your space.
Look into the company - how long it's been in business, its financial projections, what its plans are, etc. - to determine how stable it'll be long-term. You must also perform credit and background checks on the company, as well as those in charge to determine their financial standing.
Lastly, make sure to speak to former landlords. You can learn a lot about the way a corporate tenant treats their space by speaking to past landlords.
Invest in Tenant Happiness
When you find a good tenant, it's your job to keep them happy. The best way to maximize your rental income is to get your commercial tenants to renew their leases again and again.
The best way to do this is to look after your property. Take maintenance seriously and promptly respond to your tenants' requests for repairs and maintenance.
Depending on the type of business your tenant conducts, your unit could go through a lot of wear and tear. It's important to hire the right professionals to keep your property in good shape. Not only will it guarantee tenant satisfaction, but it'll also keep your property valuable for longer.
Commercial Property Owners Need Property Management
These tips can help commercial property owners maximize ROI on their investments. Owning a commercial space is a demanding job, so if you're not able to give it the attention it needs, hiring commercial property management is the best move.
At PMI Capital City RTP, we've been helping Raleigh's commercial property investors properly manage their spaces for years. Our comprehensive services include everything discussed here and so much more. To learn more about how we can help you thrive as a commercial real estate investor, contact us today.
