How To Ensure Your Commercial Real Estate Acquisition is a Success

How To Ensure Your Commercial Real Estate Acquisition is a Success

Commercial real estate in Vancouver is high in demand. It’s great infrastructure, high standard of living, and access to other markets makes it a desirable area.

If your organization is looking to invest in commercial real estate this year, here are some effective tips to help with the acquisition.

Determine your goals with the acquisition

Commercial real estate acquisitions can be done for a variety of reasons. An organization might require property to expand their operations, this can be in the form of buying a warehouse, retail property, or even new office premises. Alternatively, commercial real estate can be acquired as part of a real estate portfolio for additional income or as an asset. Depending on the purpose of the commercial real estate acquisition, your goals will differ.

If commercial real estate is purchased for business operations, things to consider include:

Location: You’d ideally want a warehouse where the property is affordable, yet in the vicinity, to avoid supply chain issues. For a retail store or office, the property would need to be in a lucrative location in terms of customers and employees.

Proximity to competitors: Usually competitors in the finance and retail industry tend to be located near one another.

 Retail store.

On the other hand, if your goal of the property is as an investment, consider properties that would have a high demand amongst tenants. Typically, the most lucrative real estate investment properties tend to be multi-family properties and mixed use real estate.

Other, more affordable investment properties include condominiums, vacation homes, and retail property for rental income.

Understand the real estate market you’re investing in

Don’t make an investment decision in haste because an affordable property is on the market. Take your time out to research the local real estate market you’re investing in, particularly if it’s a new city. Understand the demand of the area, determine what kind of businesses will flourish here, what type of housing is required, and prices too. Determine the current and long term real estate market trends to make an informed real estate investing decision.

Have your finances in order

Commercial real estate is generally more expensive than residential real estate. Whether it’s for investment or expansion purposes, an organization needs to determine whether it can afford this investment. Financing is the preferred choice over using the organization’s funds; however, you need to be realistic with the repayment schedule too. Investing in a million dollar multi-family property, for example, isn’t ideal when you cannot afford the repayment schedule. Calculate the predicted cash inflows of your business to determine whether it’s a financially sound choice.

Global Capital Partners Fund is a leading private lending company. They can help your organization with real estate acquisitions. Their comprehensive financing solutions in Vancouver consist of bridge loans, mortgage lending, and asset based lending, and hard money loans. The company has over 30 years of experience in the industry and has worked with businesses across various industries too. Get in touch with their agents and begin your loan application today.

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