Commercial rental question

5 Replies

Residential landlord here

I've found a few potential rental investments, but they're partial resident units and a few commercial units.

I've never touched commercial rental before. Is there anything I should consider differently than a residential?

@Jeffery Kuhl What kind of commercial?  For office and retail you would consider different things. 

For office you would consider the parking, submarket vacancy, rental rates, typical landlord concessions, proximity to workforce, just to name a few.  

For retail you would consider, vacancy and rental rates, area demographics like household income and household size, age, etc. You would also want high traffic in front of your building, good signage, good ingress / egress, ample parking, good visibility, good tenant mix, unique stores that are not over saturated in the area, etc.  

They are drastically different. You'll want to understand the tenant's needs and expectations, have capital for costlier repairs, have a lawyer/broker, etc.

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