Developing commercial real estate is an intense, time consuming endeavor. In order to ensure that you are making a smart investment you should have a vision for the types of business you want to house, and a basic idea of the sort of building you want to be in, whether it be an office park, a warehouse or a retail center. It may be helpful to take a class on property management before you begin so that you will have a firm grasp on all of the options available to you.
Once you have made these determinations the next step is to investigate areas where you could potentially build. There are trade journals and real estate professionals that will give you a basic idea of which areas are in demand. But before investing any money in any location it would be to your advantage to visit the area and speak to the people that frequent the area and those that are already conducting business there. These people will give you the most accurate appraisal of an area and will have the insight to comment on areas of business that you might not think to ask about such as accessibility, troubles with the power grid, upcoming construction projects and things of this nature.
Once you have found a location that you feel comfortable with and have assured that it’s zoned for the kind of commercial activity your business requires its time to secure financing. Typically financing comes from one of two areas, either a business loan or through investors. It’s not uncommon to finance your business through a combination of the two.
Once the land is purchased you can begin working with an architect and start locating a contractor to carry out the plans. It will be to your advantage to request in advance weekly and monthly progress reports so that you are kept in the loop as to how the project is going. Once the building is complete and approved by a building inspector you can begin meeting with potential tenants looking to set up shop in your development.
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