Leasing commercial real estate is one of the most profitable types of business and is almost always in demand. Many small firms and start-up entrepreneurs are looking for office space for their own placement and organization of their business. Their desire to purchase a roof over their heads, and for relatively little money, allows them to receive a steady income from renting out space. In addition to small entrepreneurs, often the premises can be easily rented out for small shops, where the former owners of small kiosks and trading places in industrial markets are increasingly forced to leave.
A striking example of the success of the commercial real estate rental business can be numerous office buildings, stuffed to overflowing with small firms.
The attractiveness of this direction lies also in the fact that its organization usually requires only initial investments, and all current costs can be passed on to customers. Naturally, to create such a business, you must have a suitable property.
For the reliability of the enterprise, it is desirable to acquire such an object in the property, so as not to depend on the whim of its owner.
However, in case of a shortage of funds, it is possible to rent a building, subject to the right to sublease its premises. It is often more profitable for the owners of a building to rent it out as a whole than to painstakingly look for many small tenants and formalize relations with them. This is all true, but still, a decrease in the share of profits significantly affects the overall profitability of the project, so the acquisition of a building as a property is always a priority compared to renting, and carries fewer risks for the entrepreneur.
It is absolutely not necessary to choose real estate objects in the city center, where their cost exceeds all conceivable limits.
It is often much more profitable to buy a building or premises on the outskirts of the city or somewhere in a residential area, which will require a much lower level of investment.
The only important condition in the selection of real estate objects is the availability of public transport stops nearby.
A good option for acquiring such an object is the old abandoned buildings of ruined industrial enterprises, offices of shopping centers. The worse the technical condition of the building, the cheaper it can be purchased, which is what many entrepreneurs who earn money by renting out commercial real estate use. On the other hand, if there are sufficient funds, sometimes it is easier to build a new building, planning its space for rent in advance.
When repairing an old premises or equipping a new one, it is necessary to take into account the peculiarities of the delivery of commercial real estate.
Since the premises of the office building will be rented out to different tenants, it is necessary to provide for a separate supply of communications and the possibility of disconnecting any premises from heating and electricity in order to avoid unnecessary expenses for empty areas. In addition, it is desirable to pre-design common areas, toilets, eating areas, locations for shared office equipment. This will create comfortable conditions for the work of small businesses and increase the attractiveness of real estate. As a rule, tenants do not impose special requirements for interior decoration, so repairs and decoration can be done using cheap building materials. This reduces the amount of investment needed.
Particular attention should be paid to the connection of modern communications, especially high-speed Internet, as well as the organization of wi-fi.
Moreover, among the tenants it is advantageous to have an accounting firm, as well as a firm offering office services: photocopying, printing texts, and so on. This makes it possible to provide tenants with the necessary office services and fully fill all the leased premises. To attract customers, you can also use common areas, the hall of an office building, allowing you to place tenants’ advertising products in them, installing special advertising structures for this.
An excellent addition, in terms of technical equipment, is also the connection of a mini-automatic telephone exchange and the provision of city telephone numbers to tenants, which will help to secure permanent tenants in the allotted places.
When organizing a business for the delivery of office real estate, it is necessary to pay special attention to the legally correct execution of contracts, the possibility of recovering losses from unscrupulous tenants. The efficiency of renting office real estate is confirmed by experts who estimate the growth in rental rates by about 10% per year. Experience shows that it is possible to recoup investments in the creation of an office real estate center in 2-3 years.
Naturally, for the proper organization of a business, a business plan is needed , which can be ordered on our website.