Building Commercial Real Estate To Lease

Those looking for a solid commercial real estate investment should consider building commercial real estate to lease.  Whether you are building a strip mall or office complex, with some good knowledge of the real estate market and property management, you can earn substantial income with such an investment. 

Prior to building commercial real estate to lease you have to first find the right property and make sure it is zoned for the use that you wish.  If you are planning on building an office complex, for example, you will have to have it zoned for business use.   You also have to take care of due diligence.

Due diligence includes a survey of the property, making sure that you have all the necessary improvements on the property such as roads going in and out of the property, driveways, utilities, sewer and water, in addition to zoning.  You should also ask for an environmental report to make sure the soil on the property is not contaminated. 

If you are planning on acting as your own general contractor when building commercial real estate to lease, you will have to submit your plans for your building to the municipality in which it is located for approval.  Once your building plans meet approval, the municipality will issue a building permit.  You can then begin building your project.

Chances are that you will be getting financing for your project as well as investing some of your own money.  The trades people will be paid periodically throughout the construction process.  As general contractor, you will have to collect waivers of lien and prepare a Contractor Sworn Statement so the title company can release the funds.  Once the property is completed and all the trades have been paid, you will get title to the property. 

Prior to final construction, you should be working on getting businesses to lease the spaces you are offering for rent.  Hopefully, you will have most of the property leased prior to the settlement of the property and the completion of construction.  It will then be time to find a good property manager.

Property managers collect the rent on the lease properties as well as the common area maintenance, also called CAM.  In the case of an office complex, all of the units will share the parking area, garbage disposal and some utilities.  Common area maintenance is usually incorporated into the lease and depends on the square footage of each rental property.  Common area maintenance also entails lawn care, cleaning, advertising and snow removal. 

If you can manage to be your own property manager, you can use your commercial real estate as steady income.  Property managers generally charge a fee for performing this duty and this can be an good way for you to earn more profit when building commercial real estate to lease. 

Building commercial real estate to lease can be an ideal way to invest in commercial real estate college station, especially if you are willing to act as your own general contractor or property manager.  This area of real estate investment can insure a steady, solid income for the investor.

You can find the best optional parameters for your real estate college station investments here.