Commercial Real Estate Investing: Your First Shopping Center

As an investor in commercial real estate, the key to making a significant financial profit lies in the choice of property to purchase and then making smart decisions with regard to that property. One area of commercial real estate investing that is making a strong financial profit of the investor is the shopping center. Whether is a major metropolitan city, such as New York City or Chicago, or in a smaller city, such as Fort Worth, Texas, investing in commercial shopping centers is a great way to improve your financial future.

When considering the purchase of a shopping center as commercial real estate, the first issue of concern should be, of course, the location. Because the location will bring in businesses and clients, it is important to choose a location that is of high visibility and can be accessed by frontage roads. Be careful, however, as with many road constructions, you do not want to purchase a shopping center that may be subject to the nuisance of road blocks and diversions.

Next, research the other shopping centers in the area. For your shopping center to be profitable, it must provide adequate parking, at no cost, and provide a nice diversity of businesses, allowing for the potential clients to view your area as a “one stop” shopping center. An example might be a shopping center that offers a nail salon, a hair salon and a medi-spa. This type of shopping center would offer clients with one convenient location in which to obtain a variety of services, thereby making your real estate investment more valuable.

As mentioned, the parking lot should be adequate to provide clients with parking while they shop. If the parking lot to your commercial real estate shopping center is not adequately lit, if it is difficult to drive in and out of, or if it is not well maintained, clients, often will not frequent the businesses within the shopping center and, therefore, this will impact your ability to turn a profit on the rental of the units within the shopping center.

When considering any real estate investment, the key to ensuring the most profit off of your dollar of investment is to research the investment carefully. When considering commercial real estate, purchasing a shopping center is a great way in which to generate a nice profit with little concern for tenant abuse. Because your tenants are also in business to make a profit, it is in their interests to maintain the property well, just as it is in your own. Using location, visibility and appropriate parking, you will have the foundation for purchasing the perfect shopping center as part of your commercial real estate portfolio.

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