If you’re looking to dip your toes into the Denver commercial real estate market, it’s important to have the most extensive and informed information before you decide to invest large amounts of capital into this potentially-lucrative market. Clearly, not every individual or firm that makes the jump into commercial real estate market will succeed, highlighting the importance of doing one’s due diligence in regards to sound investing. There are certainly a few minefields and danger zones to be aware of if you’re going to take the plunge and invest in commercial real estate property. Here are few of the warning signs to make yourself aware of.
The Seller is Eager to Speed Up the Process
Are you looking at purchasing a potential piece of property and the deal looks to be a winner, but the seller is a little too enthusiastic about speeding up the deal? You may want to do your homework and investigate whether your seller is hiding a dark secret about the property.
Perhaps there are serious foundation issues which will require an extensive amount of repairs, or perhaps there are a hefty amount of taxes which they owe and are trying to sweep under the rug. Whatever the reason, an overly eager seller may be an indication that they are trying to keep some information out of the deal and would like to finalize the deal immediately. Don’t rush into this deal and take precaution with every part of it.
Lease Rates are Not in Line with What You Need
Are you purchasing a piece of property with a specific figure in mind when it comes to the lease rates and terms you intend to set? You need to be sure that these figures are in line with comparable properties in the area, as it’s possible you won’t be able to easily fill your building if terms are far beyond the going rate in the area. Take the necessary step to ensure you are safely within your desired rate when it comes to the average property in the area.
If rates are far below what is needed in terms of profitability, you need to seriously reconsider the price of purchase or even think about moving on to another property. Waiting for your building to appreciate is not always the desirable strategy when it comes to investing in the Denver commercial real estate marketplace.
If you’re seeking a qualified and knowledgeable real estate firm in the Denver area to assist you through the property investment and development process, Elevation Group is your preferred choice in the mile high city. We offer expert advice and help from start to finish in order to ensure your commercial or residential project is a smooth success, providing you with the needed peace of mind to make your dreams a reality. Contact us
today to begin the process of building your dream property development.