Commercial rental question
5 Replies
Jeffery Kuhl
Real Estate Investor from Fayetteville, North Carolina
posted 11 months ago
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?
Eric Lefteroff
Real Estate Agent from Renton, WA
replied 11 months ago
@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.
Jeffery Kuhl
Real Estate Investor from Fayetteville, North Carolina
replied 11 months ago
Thank you
That's all a completely new mindset to myself. Residential rentals foot traffic is barely a consideration
Jai Reddy
from Edmond, OK
replied 11 months ago
The individual Lease's with the Tenants are very important to read and understand.
John Vanhara
from Torrance, CA
replied 11 months ago
Check the leases for the commercial. Are they gross, NNN, etc.
Ronald Rohde
Attorney from Dallas, TX
replied 11 months ago
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.