4 Factors to Consider for a Commercial Investment Property in Miami Beach
Commercial investment property in Miami Beach is a market with excellent profit potential. JMK Property Investment is ideally suited to help you achieve the best return on your investment.
There is a lot to consider when you purchase a commercial investment property in any location, though. Here are four key factors:
What’s Your Financing Plan and Risk Level Tolerance?
Start researching finance options early in the process. That means you will know how much you can borrow, as well as how much cash you need on hand. Financing and cash assets are not just about purchasing a property. You often need them to afford property improvements as well.
Consider what level of risk is comfortable for you before you purchase a commercial property. Commercial investment property in Miami Beach, for example, offers lucrative potential. However, there is always an element of risk in any investment.
Keep in mind, other areas present more risk than a growing market like Miami. There are also other factors to consider for risk assessment besides location. One example is the age of a building and the market it was designed to serve.
Selecting a broker with an excellent reputation lowers your risk levels. For commercial investment property in Miami, JMK Property Investment is the brokerage group experienced enough to be experts in our market. Choose an established brokerage group like ours to give you an edge throughout the acquisition process.
What Are Market Trends Around Your Commercial Property Investment in Miami Beach?
When you plan a commercial investment property in Miami Beach or any other city, learn about the local neighborhoods. JMK Property provides our brokerage clients with a thorough market analysis for this information.
For example, is your commercial property in an area that serves tourists or locals? Knowing the demographics can narrow down your tenant search. Identifying unserved local needs reveals your ideal tenant base. Filling a market void actually puts you ahead of trends.
Market trending is also important if you are purchasing an office building. Business sectors often cluster together. When you purchase a property in an office park that’s trending with new law offices, targeting attorney tenants is smart.
It’s also good to know any planned commercial and government investments for the area. This information is an effective market indicator as well.
What’s Involved with Managing a Commercial Property?
When purchasing a commercial investment property, consider whether or not you have time to manage it well. Furthermore, do a realistic assessment of how much time that actually requires. Property management is more time-consuming than many people realize.
Some examples of what’s involved in property management include maintenance of the following:
Plumbing and electrical systems
Fire prevention systems
Also, common areas and shared bathrooms require regular cleaning.
Even if you contract out several of these tasks, your phone may ring at 1 AM when a building alarm is tripped. Maintaining a safe property is a 24-hour job. And tenants are pleased when repairs are quickly attended to, regardless of the hour.
If this is more than you have time for, there is an easy solution. Hiring a property management company achieves your goal of owning investment property without sacrificing time. Property management companies are experienced professionals who handle everything from lock-out calls to applying a fresh coat of paint when necessary.
For your investment property in Miami Beach, JMK Property Investment offers extensive management services. Hiring a company with our level of property management experience saves you time and headaches. Additionally, you retain the best tenants when a building is maintained professionally.
How Will You Handle Leasing Out the Property?
If you purchase a property with existing tenants, read those leases. Also, check their rental payment history and credit if possible.
Consider how to attract stable tenants if the building you purchase has vacancies. First, determine your credit requirements for them. Then, consider which tenants are ideal for the location and building type.
At this point, decide if you want to offer tenants anything to entice them. For example, do you have the funds to contribute to tenant improvement (T&I) buildout costs?
Finally, develop a plan to recruit those tenants.
But before these steps are complete, establish the lease terms required to be profitable. Most monthly commercial leases determine rent with a dollar amount per sq. foot calculation. At this stage, your lawyer reviews the lease agreements you plan to use. Also, ask your lawyer what steps are required if a tenant defaults on a lease agreement.
Rent collection is key to your success with commercial property investments. Consider a mailing address for receiving rent checks. One suggestion is that the address not be your home office. Even in our modern times, individuals still drop off rent in person on occasion. If this presents an inconvenience, a post office box is a solution.
There are also electronic ways of collecting rent that some tenants appreciate. Investigate different methods of collecting rent online or through bank transfers.
Let JMK Property Investment Handle Your Investment Property in Miami Beach
Hand these processes to a leasing and brokerage agency, like JMK Property Investment, and have less to worry about. Choose us as your leasing partner and set our skills in motion for your benefit. We know how to successfully handle the leasing process. And we know market strategies that fill spaces.