Despite the fact commercial real estate is an industry in its own right, containing many unique rules and practices, good business sense still lies at the heart of the success of a commercial portfolio. Whether you’re just starting to dip your toe into commercial properties in your spare time or you’re wanting to manage your portfolio on a full-time basis, there are a number of things you’ll need to do to make it a success.
Here are our top tips:
- Investing in Experts
There are a number of organisations, e.g. GVA, whose expertise are within the commercial property industry. They boast experience in all the necessary areas to help make your portfolio succeed, from creating the right strategy to managing your assets. Furthermore, these companies will also provide you with advice on how you can stay in budget while getting to grips with any potential pitfalls, e.g. a boiler breakdown in one of your properties.
In the long run, it’s definitely worth investing in these experts because they won’t just save you time but plenty of money, too.
- Balancing Maintenance and Repairs
It doesn’t matter whether you’re going to rent or own your commercial properties because it’s inevitable something will need repairing at some time or other. Therefore, you’ll need to establish how much money and maintenance you’ll need to invest in your properties to keep them running. Too little and you might find yourself drowning in replacement costs, while too much could eat away at a chunk of your much-needed profits.
- Asking the Right Questions
There are a lot of negotiations to be had within the real estate sector. In fact, almost everything is negotiable in some way or other, which means, when you come up against a change, you don’t have to automatically accept it.
You can always find room for negotiations which will be better for you and your business, and more often than not, you’ll succeed in getting what you want. Due to the fact businesses tend to change over short periods but commercial contracts are often taken out over longer periods, you might even find you can negotiate mid-lease. However, if there are changes you need to make, you never know if you don’t ask.
By questioning and negotiating everything it prevents you and others from becoming complacent. Asking the right questions and constantly querying costs could save your business a lot of money.
Setting up a commercial property portfolio takes lots of planning and time. And with things often moving slowly within this industry, you’ll need to be prepared to work to longer timescales than you might have initially thought.