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The New York commercial environment is still reeling from the after-effects of the pandemic, war, and more. Despite this, Manhattan's office leasing volume still grew by 26% in Q3 of 2022.
This positive growth makes commercial property investments a promising prospect for those who want to take advantage of falling property prices in New York.
Are you eager to benefit from a potential boom in demand for commercial rental space? Keep reading for key pointers on how to make the most of it.
Identify the Different Types of Commercial Investments
City skyscrapers are a major commercial property classification. They're also the most expensive, with price tags of over $1 billion. If that's out of your league, there are several other types of commercial buildings to consider.
Office Buildings
These are the most popular types of real estate, used by professionals and companies alike. You can choose from simple stand-alone buildings or those that form part of larger mixed-use developments.
Industrial Buildings
These buildings cater to manufacturers and activities associated with this sector. They include factories and warehouses.
Retail Buildings
Retail buildings are a diverse section of commercial real estate. They include large shopping centers and retail outlets, such as:
- Restaurants
- Boutiques
- Distribution centers
- Grocery stores
Depending on their location, these buildings can yield consistently high rentals for investors.
Location Is Key for Commercial Property Investments
A premium commercial investment location offers added security and potential profits for businesses and investors.
The location must suit the intended purpose of the commercial property. For instance, a manufacturing business should have access to transport options for raw materials and other suppliers.
These are the characteristics of good commercial properties:
- A high-level traffic area
- Easy ingress and egress
- Abundant parking
- Strong visibility from the road
- Complementary businesses nearby
All these factors determine the type of tenants you'll attract and affect the success of their business. Successful businesses pay the rent on time and renew their leases regularly.
Consider Potential Commercial Property Income
Many factors can affect the amount of rent you can charge for a commercial building. High demand for a particular type of property in the area is a major driver of higher rent prices.
Other factors that impact your potential income include:
- Location
- Commercial property condition
- Onsite amenities
- Available parking
- Size of the building
A property manager will conduct a rental analysis to help you figure out how much rent to charge. They base this on comparisons with equivalent buildings in the neighborhood.
They can also advise you on any necessary improvements to the building to help you attract more tenants.
Before you invest in a property, be sure to conduct a thorough investigation into your potential ROI concerning the rent you can charge.
Thriving as a Commercial Property Landlord
When you've done your due diligence for determining the best commercial property investments in New York, your next step is hiring a property manager to help you maximize your purchase.
Managing and maintaining your commercial building takes a lot of time and effort. A property manager helps alleviate some of these stresses.
Our property management team offers a range of services, including property maintenance, tenant screening, and rent collection.
Get in touch today for assistance with managing every aspect of your New York City commercial property investment.
