Thursday, December 22, 2011

Prefabricated Commercial Buildings - The Smarter Selection

Which Types of Commercial Property Should You Invest In? Land: the people who invest in raw land often hope to buy agricultural land near commercially-zoned land at a few thousand dollars per acre. You should consider invest in land if you

If one of your investment objectives is to get high cash flow, you may want to stay away from apartments. In general, apartments are easy to buy and harder to sell. Special Purpose Properties: These are properties designed for a specific business, e.g. restaurants, gas stations, and hotels/motels.

The restaurant operators sell the real estate to investors higher cap rate and lease back the property for 20 years. They in turn use the sale proceeds to expand their business by building more restaurants.

- Gas stations: when you buy a gas station, you buy both real estate and the gas station business. Office Buildings: these properties are single or multi-story buildings.

- Single-tenant buildings: the properties are used as corporate headquarters of big corporations like Cisco.

- Multi-tenant buildings: these properties are leased by small businesses, e.g. real estate, tax accountants. Investors who purchase these properties want to spread out the investment risks.

- Leases: The leases for office building vary from full service [landlords pay property tax, insurance, maintenance and utilities] to NNN [tenants pay property tax, insurance, maintenance and utilities]. The NNN lease is a litmus test on whether the office building is in high demand by tenants or not.

- Medical buildings: these properties are leased primarily by doctors and dentists. Some investors prefer medical buildings as medical tenants are very recession proof.

- Single-tenant building: The advantage is you just have to work with one tenant.

- High Quality Tenants: most of them have good credits, lot of assets and promptly pay the rent when due. The tenants pay a base rent and reimburse the landlord for property taxes, insurance, maintenance and sometimes even property management fees.

- Ground Lease: occasionally a retail center with ground lease is for sale. Once the ground lease expires and the land owner refuses to extend the land lease, you own nothing! Airplane hangers, warehouses, educational facilities, office space, public storage buildings, libraries, hospitals, barns, restaurants, and even outdoor storage sheds are just some of the current types of buildings for which businesses have utilized prefabricated buildings. The interlocking design of prefabricated buildings allows for their relocation to different sites. This results in the construction time of the prefabricated building being in many cases shorter than that of conventional on-site construction. Prefabricated commercial buildings are usually less expensive than conventional structures built on-site.

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