Most investors feel comfortable with investing in residential property as they are familiar with the simplicity that is traditional from one property to the next. Most of us have rented a property, and some of us have bought a house or condo unit, and understand what that experience entails.
Commercial property, on the other hand, is a little more puzzling, but is an increasingly valid investment option for buyers in a growing state such as Florida.
There’s a little more to commercial property, including terms and conditions of commercial leases, industry trends and who is responsible for the outgoings (expenses) of the building.
Here’s a break down of the key risks and factors to consider.
Types of Property – Office, Retail, Industrial, Multi Family?
Return on Investment – What is common or traditional?
Risk – What level of risk should you consider?
Lease – What type of lease and duration?
Quality of tenant – What makes one Tenant better than the other?
Maintenance costs –What Should I expect?