Your Tenancy In Commercial Investment Properties Is Much More Than Collecting Rent

Jun 7, 2015

commercial investment properties are much more that collecting rent

The rent, of course, is very important when owning commercial investment properties but is just for STARTERS.

When determining which tenant or tenants to deal with or acquire like in a NNN property or retail shopping center, keep in mind the following important issues which will determine your success or failure.

Tenant Credit History

The credit history of the tenants. Such as their strength of balance sheet, years in business, the business concept itself in today’s economy.

Are The tenants A Good Fit For The Location?

Are they a good fit for the neighborhood or location and the demographics of the people living there?

WIll The Tenant Mix Bring In Additional Business?

Will the mix of tenancy blend properly with each other bringing in additional business to the location?

Is The Building Size Suitable For The Type Of Commercial Real Estate?

Is the building you are acquiring the proper size for the prototype of the commercial investment properties? If the fit is not great, the tenant will be looking for another location constantly and may be leading you to a vacancy?

Avoid Conflicts With Present Tenants

Make sure you have no conflicts with multiple tenants in a shopping center that may be competing with each other or have severe restrictions in their leases that prohibit a large part of the market not to be able for you to rent to while they are a tenant.

Good Tenants In Commercial Investment Properties Bring A Better Loan Rate

Good tenant,s that have great credit bring not only business to the location but may get you, the investor, a better loan rate on the property from the lender?

Invest In Multi-Purpose Buildings

Do what you can to purchase generic buildings that are not just suitable for one specific tenant but can be utilized by many businesses in the future.

Interested in moving to the next level, and acquiring a commercial income property that will help you reach your passive income goals?

Contact Jeff Gitt at 314-757-1031 for more information, or to find out about the equity and finance options offered by Westwood.
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Westwood Net Lease Advisors has made every attempt to ensure the accuracy and reliability of the information provided. Westwood Net Lease Advisors does not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained herein. We are not lawyers, accountants (CPAs), or certified financial planners, nor is the information herein considered legally-binding legal advice, tax guidance, or financial counsel.