Purchasing Commercial Real Estate in Philadelphia
You’ve done extensive research into the topic of commercial realty investment in Philadelphia, PA. Now, how do you get started? Commercial real estate investments often involve longer lease terms, more sophisticated tenants, and higher return rates. Commercial real estate investors who deal with large companies and corporations often see their returns increase and their commercial properties’ income grow. But buying commercial realty properties isn’t without its own set of challenges.
Here are some things you need to consider before buying commercial real estate properties in Philadelphia, PA.
1. Why are you investing in CRE?
Why would you want to buy commercial property? Is it because you’re hoping to make money off it? Or maybe you just enjoy the idea of owning your own business? Whatever the reason may be, if you’re thinking about investing in commercial real estate, then you should know what you’re getting into before you start buying properties. If you’re completely new to the world of commercial property investment, you might be better off taking things slowly and educating yourself first before you contact listing agents of commercial properties to buy them. The worst mistake you could make right now would be locking yourself into a bad deal that you can’t get out of.
After you’ve established the “Why” and feel confident enough to continue, you’re ready to move on.
2. Research the property types that interest you
There are several different kinds of properties in commercial real estate:
- Multifamily (apartments).
- Office space
- Multi-use properties.
- Industrial properties.
- Retail properties.
- Hotels & other lodging properties.
- Commercial land.
You should take some time to research each type of investment and decide which ones appeal the most to your personal interests. Maybe you like buying multifamily homes that house hundreds of people; maybe you like buying commercial real estate that could potentially become the new headquarters for America’s next big corporation. Regardless of whether you’re buying rental property or flipping houses for profit, knowing which types of properties interest and excite you the most is essential to begin your commercial real estate investment career.
3. Research Philadelphia’s CRE market
Commercial real estate investments in the suburbs and metropolitan areas of Philadelphia, PA offer many business development options, including industrial properties, warehouse space, office buildings, and more. There are search tools you can use to explore all the commercial real estate properties available in Philadelphia, PA. Each listing includes details about the property, including:
- Property type.
- Square feet of the building.
- Lot size.
- Price of property.
- The listing agent.
4. Location of your property
Many of Philadelphia, Pennsylvania’s suburbs are located near major transportation hubs, which provide both you and potential customers easy access to commercial real estate as well as numerous markets. Location is one of the most important factors when choosing a commercial property. Choose a property that’s convenient to local markets and centers of activities to help your potential tenants live and/or work in your property. When choosing between investing in commercial property in Philadelphia and its neighboring suburbs, you’re most likely going to want to consider the popular attractions nearby. These include Rittenhouse Square Park, the Franklin Institute, Spruce Street Harbor Park, and Center City.
5. Contact listing agents
After choosing which commercial real estate investment opportunities you want to pursue, contact the listing agents of the selected deals. Work out the details of the deals and then establish clear expectations for all parties. At the end of the process, you should always be asking as many questions as possible about the property so that you can get an idea of whether you’re interested in buying it. You should also be clearly communicating all your wants and making sure that you know how you plan to communicate during the negotiation process.
If you can and should, work with just one agency. Most agencies expect exclusivity when dealing with them. If this applies to you, then do not deal with any other agency until you’ve worked out an agreement with the current agency. You can find another commercial real estate property that you’d like to view. Make sure to not call the office of the listed property, but instead call the office of the agency you’re currently doing work with. If you’re working with multiple agents, it might be best to stick with just one agent at first. Otherwise, you could end up creating too much confusion for yourself.
Philadelphia Commercial Real Estate
In all, there are many considerations to take when looking to purchase commercial real estate property in Philadelphia. Take your time to make sure the process goes smoothly. Figure out the ‘why’ aspect of investing in commercial real estate. This will give you a vision of your goals. From there, dig into the various types of properties that will suit your needs best. Then you can focus on researching the Philadelphia market and the location you want to purchase. From there you will have a solid understanding of what is going to work best to communicate your needs with listing agents.
Brotherly Love Real Estate is a professional homebuyer in Philly. Click here to learn more about how we buy houses in Philadelphia. Our team purchases commercial property throughout the city. If you need to sell your property contact us today.