Skip to main content

Five Due Diligence Mistakes That Can Ruin Your Commercial Real Estate Investment


Five Due Diligence Mistakes That Can Ruin Your Commercial Real Estate Investment

It's really a drawn-out and complicated process to find a perfectly suited commercial office space for your business, and if it's not pursued in a proper way, it can cost you lots of money and might end up in a conflicting place. So, when it comes to buying an office space or any other commercial space for your business, it's very important for you to have a strategy and ensure that you are making a good decision based on the needs of your company. Below mentioned are a few most common due diligences mistakes that the investors should be careful about.
1.      Incorrect Property Valuation: One most common mistake made by investors while purchasing a commercial space is that they don't valuate the property correctly. This might lead to lots of misunderstandings which would finally end up with a wrong deal. So, just make sure that you really are conservative when it comes to underwriting a deal. Check for sales competitors and other properties available in the market by getting in touch with the most active commercial agents.

2.      Not Understanding Lender's Underwriting Requirements: Before spending your valuable time, money and energy conducting due diligence, make sure that you have a prior discussion with the lenders about the loan amount they would put on your property. Because, these days the money lenders have been very conformist and they have long lists of things to be considered like the physical condition, sale and lease comparable intended use, environmental issues and so on. So, it is important to check with the lenders prior to going ahead with the process.

3.      Not checking if the Property Complies: These days, it's not at all uncommon that a buyer gets to know that the property doesn't meet the compliance of building after purchasing it. The buyers usually get to know about it when the city inspector comes to check if there's any infarction associated with the property. So, it's always a good idea to have an architect, planner or the contractor to inspect the property and discuss the issues related to compliances during the due diligence period.

4.      Assuming There Are No issues: Usually the buyers or tenants who are in a hurry to get into a property make this mistake. They just want to get settled in a space which makes them assume that there are no issues. But sometimes the leases can have tripwires like contraction provisions, cancellation provision, fixed option rents, etc. As a tenant you must be aware of these provisions as it can put you in a bind making you devalue the property. So, if you are not familiar with the process of buying or leasing commercial office space in Noida, it's good to have an attorney who can help you in reading the lease.

5.      Not Spending Time at the Property: When you are about to buy a property or leasing it, it's not just enough if you take a bland look at it as it's something that impacts your business heavily. Make sure you visit the property multiple times and that too at different times in a day; this gives you a better idea of what goes on there at the property. Sometimes it may also change your mind and the decision of buying the property. You won't just know what's going to be hidden; may be the moulds or the fire issues in some units to name a few. Spend enough time at the property and make sure that it's ideal for you.

Many commercial real estate investors are not aware of the things that they are unaware of! The above mentioned points surely give a brief idea and they'll also get to know the things they need to follow while looking out for a commercial space to set up their business.
Bottom Line

Being more conscious towards investing in a property might be initially more costly; however, it is ultimately rewarding to make such investments. Projects like Anthurium Sector 73 Noida find that spaces are sold and leases are more readily signed; investors save money by cutting expenses on due diligence; however, this can be the biggest mistake of their life.

So, if you want to invest in a safe and approved property, book your commercial office space with Anthurium Noida TODAY!!
 
Read More:-
 
Avoid Blunders While Investing In Commercial Property
 
Points To Ponder Before Investing in Executive Office Space 
 
Using Competitions to Drive Sales in Your Retail Space 
 
Showcase a Professional Image With Anthurium Noida’s Commercial Office Space 
 
 Business Success Secret – Invest With Serviced Offices
 
Is Your Business Space Helping Or Hindering Your Staff?
 
 
 
 
 
 
Labels:

Comments

Post a Comment

Popular posts from this blog

Defining the benefits of Virtual Office Space in Noida?

Setting up a business of your own is a great and profitable speculation, however establishing a business with a physical work space is a costly affair; you need to be able to manage the cost of the location you choose. Sadly, a great number of worthy businesses cease much before they even try to take their first baby step, just because the new business owners can not afford the costs associated with setting up a business location. An ever increasing number of business people are discovering that there is an option, that can safeguard the interest of the business owners, by running your business over internet and managing operations through virtual office settings wherein employer and employees can join hands and create an efficient work environment and move forward toward achieving their goal of reaching the sky that too without investing huge costs on physical business setup. What does Virtual Office mean? Simply putting, a virtual office is the extension of your home offi...
37 comments
Read more

Top 6 Commercial Projects for Sale in Noida

The ever growing commercial and industrial expansion in Noida has led to the development of a large number of hubs of recreational activities, shopping complexes, multi-storeyed office buildings, as well as commercial spaces. One major innovation has been in the field of working and co-working spaces. Just as the technological advancements take an uptick, so does the need of having a comfortable and trouble-free workspace. Below mentioned are the best 7 commercial projects for sale in Noida - Anthurium - It is located in sector 73, Noida, which is the most prominent property, well connected with major roads of Central Noida that surrounds the premium residential societies like Cleo County, Homes 121, Amrapali Zodiac, RG Residency, Amrapali Platinum and many more. The numerous residents in these areas are a professional lot investing in IT industry and Commercial establishments. Anthurium is a premier under-construction project that facilitates working space for any upcoming new proj...
Post a Comment
Read more

Investing in Commercial Office Space In Noida – Does It Makes Sense, Read On To Know More

You have most likely asked yourself a thousand times ‘should I buy or should I lease?’ in the past when it came to decide on where you and your family want to live or what car you want to invest into. But the same question arises in your head when you are a business owner. On the off chance that you have been trying hard to find an office space that fits your budget, done and dealt with the annual rent increase or your business needs more space than your current office space. If you are struggling with any of the above situations, it is time to consider the option of buying your own Commercial Office Space in Noida . It is true that investing in commercial property for your business is a huge step that will have an extensive effect on your business’s balance sheet, funding options and cash flow, hence we recommend to give it a serious thought. If you have every reason to invest, good solid capital, great financing options and a great project to invest into, here are a few reasons why...
Post a Comment
Read more