The profitability of commercial real estate may exceed even your highest expectations. It can be risky, though, since it requires a significant investment.

Location is the most important factor in choosing a commercial property to buy. Pay attention to the property’s surrounding neighborhood. Cross-check similar areas to see how they are growing. What you are seeing now in terms of commercial potential might be very different a few years from now.

Real estate deals must include inspections, so check the credentials of the inspector. A lot of people have no accreditation, especially in pest control services. You want to avoid a future liability that can come after the sale, if the inspection was not correct.

Be certain the commercial property you are considering has good utilities access. Your business has its own utility needs, but you are most likely going to need water, sewer, electric and possibly even gas.

Consider the surrounding area when you buy a piece of commercial real estate. Purchasing in an affluent area may help your business to be more successful, since the potential clients may have deeper pockets. If the service you offer would appeal to less affluent people, you should not set up your business in an affluent neighborhood.

Check into having an inspector look through your property before you put that property back on the market. If they flag issues that need to be fixed, repair them before you list the property for sale.

You need to advertise that your commercial property is for sale to both locally and non-local people. Many people think that investors who don’t live in their city will have no interest in their property, but this is untrue. Many investors will consider purchasing a property outside their own region if the price is right.

Take tours of any properties that you’re considering. Even better, have someone who knows commercial real estate tour the properties with you. Make a proposal early, and get into the beginning stages of negotiation. Evaluate counteroffers against the information you collected on your tours, and use that information to justify your own counteroffers.

Before you move into your new space, it may need to be improved. These changes could simply be cosmetic ones as simple as a new coat of paint or moving the furniture around. Sometimes, you may need to move a wall in order to create a better floor plan. Before buying the property, see if you can get the former owner to pay for some of these costs. If you’re renting, the landlord might chip in.

Emergency Repairs

Emergency repairs should be a high priority on your list. You should ask your landlord who is in charge of handling emergency repairs. It is important to keep these contact phone numbers handy and to have a good understanding of how long it will take for them to respond if needed. Make an emergency plan once you have this information. If a flood, fire or break-in interrupts your normal business day, you need to have a plan in place so that you can re-open as soon as possible.

There are real estate brokers who deal exclusively with commercial investments. Agents that work with tenants and landlords both are called full service brokers. There are also agents that only represent tenants. Your needs will be served better if you choose the right broker for your own personal needs. If you are looking for one who knows the issues that are relevant to tenants, then choose a broker who has the most experience dealing with tenants.

Commercial real estate can indeed be a huge source of profits. A serious commitment of funds is usually required, as are your time and other resources to insure the success of your investment. Follow these tips to success.