Investing in A Retail Space: What You Need to Know

retail space

Benefits of Investing in a Retail Space

  1. Flexibility: If you invest in a retail space anywhere from Fredericksburg to Fairfax County, you’re bound to have a large pool of potential customers.
  2. Capital Gains: Property values in a residential property investment does not grow quite the same way a retail investment does. For starters, in a retail space, there is much less upkeep and much stress on having tenants who need assistance at odd hours. You may need a maintenance service from time-to-time but your property manager or the retail manager will work with you versus depending on you. Less financial output will increase your profit and drive up your financial investment gains.
  3. Established: Again, to compare to a residential investment, a retail space will typically hold a multi-year long lease with the retailer not wanting to uproot and move once established—this will cut back on gaps in time with no tenant in your retail space.

Considerations and Risk Factors

  1. Communication: This is such an important piece of investing in anything. Before you invest in a retail space, speak to local customers and gage the market to determine if it is the right area to buy. Even from street to street in cities, consider what makes one street more appealing.
  2. Management: In a retail space, be sure that you choose your property manager wisely; this circles back to communication, but it is important nonetheless.
  3. Taxes: Research property taxes and expenses before you decide to invest in the area. Do not be surprised when it comes time for property taxes—consult a broker who knows the area well and can direct you to the location that best fits your financial profile.

Investing in a retail space can be a very profitable move. At the same time, it can be easy to get blindsided, especially if you are new to commercial real estate. That’s why it’s so important to have a commercial real estate agent that you trust on your side. Contact us today and get started.

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