Are you a real estate investor looking to pivot into commercial spaces?
You're in a great location as New Hampshire recently ranked 29th in new business growth in the United States. It also ranks 6th among states with the best-performing business communities.
Thus, commercial real estate investors are instrumental in this growth rate which helps promote local culture.
First, start by identifying the right commercial properties to buy. Next, invest in targeted property marketing and advertising campaigns to attract your ideal commercial tenant.
Here are a few important strategies to start.
Location Matters
The marketing process starts during your property search. Investing in commercial real estate is not the same as buying residential properties for your portfolio. You must look for properties located in areas with high potential for customer traffic.
The last point also depends on the industry niche.
For example, if you want to invest in office buildings, you don't need to worry about customer foot traffic. However, you still need a location that's easy for employees to get to by car or public transportation; thus, office buildings are often located in financial districts or near metro stops.
Retail stores need foot traffic, but they also need plenty of parking to accommodate people driving in to shop. These businesses do well near public transportation stations.
At this stage, consider buying parking structures or investing capital into building one. You could purchase commercial spaces next to empty lots, lots that you can rebuild into parking lots.
Research the commerce of a given area to see what the community needs. If a community needs a grocery store or laundromat, you have a smart opportunity on your hands.
The Ideal Commercial Tenant
Once you've identified and purchased your commercial space, your next step is to create an ideal tenant profile.
Your profile should cover the following data points:
- Capital on-hand
- Complete asset picture
- Past business experience (success rates, etc.)
- Commercial landlord references
- Verified identification
- Business licensing
- Legal data (court cases, etc.)
- Projected business revenue
- Industry niche
It's important to find a tenant whose niche has a higher success rate. For example, while restaurants are indeed popular, they can have a lower success rate than other niches. A grocery store may better serve the needs of the area.
Commercial Property Marketing and Advertising
Next, invest in property maintenance to get the space ready for real estate listings.
A property manager can be of great service here. They're trained in conducting thorough inspections that reveal much-needed upgrades. You also need proper inspections to comply with strict OSHA standards and other health and safety codes.
Your property manager will take professional photos of the commercial space once it's ready. They'll also lead walkthroughs of the space for potential commercial tenants, answering any questions leads may have about the space.
Remember that lease management is a part of the marketing process. Make sure the lease is written and reviewed by a legal team; you can also receive these services through a property management company.
Build Your Commercial Real Estate Portfolio
It's crucial to do your due diligence when jumping into commercial real estate.
PMI Granite State has the expertise to help you find high-potential properties and implement marketing strategies that attract ideal commercial tenants.
Call us today to discuss your long-term goals.
