Vienna, VA is known for being a great place to live, but it's also a great place to work! Competitive wages and a multitude of benefits make Vienna the ideal location for commercial property investors.
As employment opportunities grow, the need for a workspace does too. You may already have your eye on a specific property but don't jump the gun just yet.
Be sure to complete a commercial lease analysis to understand your potential profits. Keep reading to learn more.
Do You Need a Commercial Lease Analysis?
Some landlords in Vienna may think that a commercial lease analysis is a waste of time. However, an accurate analysis can be a valuable tool.
Running an analysis provides you with important information such as cash flow and net value. You can predict your expected revenue before investing in commercial real estate.
Conducting a Commercial Lease Analysis
A lease analysis relies on comparable properties. Start by researching your geographic area to understand neighborhood value.
Property location is a top consideration. The location of your commercial building will impact how profitable your investment is.
With a commercial lease, you'll want to figure out how many businesses are in the area. If you have retail space for rent, be sure to run the numbers on your specific renter niche.
People tend to work near their homes, so it's ideal to check the housing market as well. With the information you gather, you can find out the average commercial rent price and property cost.
To gain a positive cash flow, compare your property to similar ones. This will help you set a rent price that makes you money.
Calculating the Rent Price
Now that you know more about your property value, you can calculate an effective rent price. There are different ways to price your rental. You can charge a flat fee or base rent off the square footage.
Over time, the rent amount can change as property values change. Rent concessions and abatements are things you might want to become familiar with down the line.
A commercial property manager can help you set a fair rental price. To compete with other commercial real estate investments, you don't want to be too expensive or too cheap.
A rental that is priced too high may stay vacant for longer. Renters are likely to go to your competition instead. In contrast, a lower rent price may attract more businesses, but not make you enough money to see a return.
Let a Vienna, VA Property Manager Help You
Conducting a commercial lease analysis provides you with a lot of helpful information. Most importantly, you can see how much money you'll make from your investment.
Gathering details and researching can be difficult, especially if you've never conducted an analysis. A Vienna, VA property manager from PMI Smart Choice can help.
We're a premier real estate asset management company offering comprehensive commercial services. We're part of a dynamic franchise that operates on the local level.
For nearly two decades, we've helped landlords like you meet their goals. Get a free rental analysis with us now to get started.
