The ongoing appeal of real estate investment isn’t just for houses and apartments. Many investors have turned their attention to buy commercial property, seeking lucrative investment opportunities.

Buying commercial property can be one of the best investments you can make. In fact, it’s often more lucrative than residential properties. Commercial real estate investors are drawn to its potential for growth, the possibility of earning a passive income and often consistent returns.

If you’re a first-time investor, navigating the world of commercial property can be tricky. There are lots of different things to know about, research and prepare for to ensure your first-time investment is a solid one.

 

When should you buy a commercial property?

People often try to time the market when it comes to investment. However, it’s rarely as simple as picking the right month of the year.  

There are lots of factors at play that affect prices and returns including the economy, competition, demand, unemployment rate and much more.

Tips for First-Time Commercial Property Investors

 

• Do thorough research

The first step with any investment is to do your due diligence. Things you should be looking at include the state of the market in your area, historical prices and returns, the industry in the local area, your potential tenants and so on.

You'll want to keep an eye out for anything that might affect your future returns. For example, investing in commercial property near planned building sites can be disruptive and turn potential tenants away from your property.

• Pick an investment strategy

There’s a lot of flexibility in commercial property investing. You can buy up offices and rent them out to businesses. You can take a piece of land and develop new commercial properties on it. Or for more short-term investments, you can fix-and-flip commercial property that needs some work.  

Picking an investment strategy to start with will help you save some time and narrow down your list of potential properties.

• Learn the language

Those who are brand new to buying commercial real estate face a bit of a learning curve. Even if you've previously invested in residential real estate, things are slightly different when you move into commercial territory.

Spend some time researching common phrases and terminology just to familiarize yourself with the language. This will save you from any confusion when you speak with financial advisors, lenders or commercial property brokers.

• Speak with your local realtors

Those serious about commercial investing could benefit from speaking with local realtors. Approach a few different real estate agencies and make your intentions and situation known. Many real estate agencies have a mailing list that they will post out before listing the properties online. This can help you get a head-start and find properties that are a good fit for you. 

Financing Your Investment with National Bank of Arizona

Investing in commercial real estate begins with obtaining financing for most people. If you need financing help to buy commercial property, National Bank of Arizona is here to support you.  

Whether you wish to purchase owner-occupied real estate, retail, office or multi-family space, National Bank of Arizona has experienced commercial real estate professionals on hand to help. 

All loan decisions are made locally, with local market conditions in mind, so you can rest assured that you have help from those who know the Arizona commercial property market inside out.  

Contact National Bank of Arizona today to learn how we can help support your investment opportunity.