Recently, with growing demands for commercial real estate across big cities, investing in commercial spaces has become a preferable option.
For people who find big commercial projects a little too expensive, shops and retail spaces and smaller office spaces make for an appropriate investment option.
However, investing in commercial property is not as straightforward as it sounds. When thinking about the perfect office or shop to invest in, it is very important to think about return on investment. Will you recoup the capital spent acquiring the asset? How soon will you start to make a profit on your investment?
Before you make that payment, ask yourself these questions:
- Does this location suit my purpose?
Some areas are ideal for residential purposes only and may not be profitable for commercial activities. Proximity to wholesalers, consumers, and good road networks are key things to look out for when acquiring a business space. You will need to conduct ample market research to ensure you choose a place where your business can thrive.
- How sustainable is demand?
Sustained demand is crucial to ensure that your investment remains attractive long term. If the property in consideration is an office space, ensure the environment is conducive for carrying out official activities and for visitors. For a shop, it is best to carry out market research to determine the fastest moving goods for such a location and also study the demand pattern and competitive aura of the area.
- What will my expenses be? Is there a facility management provider and what is the charge?
Determine how much will be spent to maintain the building. Find out if facility management services are provided and the accompanying costs. It normally includes common expenses like electricity, trash removal, security, maintenance of the parking lot and grounds, and a repair budget.
- What are the risks?
Risk determination and management give insight on how to shift possible risks to third parties such as tenants or insurance companies. As a commercial real estate investor, you should analyze economic risks which arise from factors such as employment, population, income, and competition.
- What is the estimated appreciation rate?
Find out the price rate of properties in that area and how they have appreciated over time. If something seems unusual, explore the reasons why properties in that area have not appreciated adequately.
- Identify the purpose and plan accordingly.
Buy and Sell (long-term): It focuses on the large intrinsic value appreciation in the long term. You gain alternatives for long-term goals, such as retirement.
Buy and Sell (short-term): It aims for small to medium profits from properties under construction or sold at a profit.
Buy and Lease: This option can expect regular income and long-term value appreciation.
Buy and Self-use: You get to save on rent and reap the benefits of self-utilization, along with value appreciation.
- Speak to a specialist with the right experience
If you need advice at any stage when looking to invest in commercial property, speak to an expert with experience in the complexities of commercial property. A professional who only knows about residential properties will not help you negotiate the potential pitfalls, which is where you can lose money.
Currently, Afriland Properties Plc has on offer for sale, units in The Afriland complex Complex, Abule Egba and The Emporium, Transamadi, Port Harcourt for use as both office and retail spaces.
Reasons to invest in The Afriland Complex & The Emporium
- Low-cost facility management services
- High ROI
- 24-hour security
- In-built restrooms (in selected units)
- Quality finishing
- Quality electrical fittings
- Ample parking spaces
- Firefighting systems
- Proximity to the city centre and populated areas
For more enquiries,
Contact us: sales@afrilandproperties.com
Or Call
Boye: 08038335722
Chika:08033199436
Gladys:08033634460