Commercial Real Estate: The Importance of Research & Development in a Purchased Location

The three most important factors when buying a property are location, location, and location.

Making judgments based on the property itself rather than the location is something we hear people mention far too frequently, and for us, this is actually a huge mistake, especially when it comes to commercial real estate.

So why is location such a key factor in real estate investing?

Consider this: A property's pricing and condition are subject to change. Even the property's size is adjustable. The location of the property is the only thing that cannot be altered.

Here is why it’s important for private buyers, sellers and corporate investors to do proper research and development (R&D) in a purchased location: 

• You are able to weigh your options. Without adequate research, you'll likely choose the option that's easiest or most appealing from the get-go. This is a big no-no as you may miss out on a great deal that you could benefit from, whether now or in the future.

 

• You have enough time to understand the ins and outs of your prospective purchase. Whether you are working with a high or low budget, performing extensive R&D prior to making a decision will allow you to verify if the property will be profitable for you long-term. Find out every detail that you can about the property and its location that you’re interested in and ensure that you're completely satisfied with all that it has to offer. After all, you don't want to spend a significant sum of money only to discover later on that it isn't exactly what you wanted.

Regardless of how big or small a budget you have for investing in real estate, it's always smart to conduct sufficient research before making a business decision. Quality R&D not only makes entering the real estate market easier, it can also make it more profitable. Understanding communities — their economic and societal trends, as well as their patterns of supply and demand — means you can better forecast property value and buy and sell when the time is truly right, not just convenient. 

Ready to make a move on a property that is outside of your desired location? 

Ensure you do your homework so you can reap worthwhile returns.

Many times, our clients will buy/sell a property because they want to be 'closer' to something. Whether that's school, work, or their favorite hang-out spots, location is always a motivating factor for people. When you're ready to buy or invest in a commercial property make sure the location of it is your top priority and you will find yourself in a great situation in the long run. 

Contact our team today if you want to learn more about how to conduct a comprehensive R&D or market analysis that will yield fruitful and satisfying results.