How to evaluate potential commercial properties in the U.S.

Here's our comprehensive pre-purchase checklist

PropertySales.com has previously revealed that real estate in the U.S. is a top investment choice thanks to the stabilizing economy and growing market.

There are many opportunities for investment thanks to the large size of the country and the wide variety of properties, such as apartment buildings, condos, single-family units and townhouses. You'll need to narrow down your choices to determine the best opportunities to meet your goals.

Here are a few things you can do to evaluate potential investment properties in the U.S:

Conduct comprehensive market research

The first step in making any investment choice is conducting market research to determine what the potential is for success. Identify a few markets you are interested in learning more about, and research the performance of real estate in the area. Are prices on the rise? Will circumstances soon change that will cause prices to rise? Is it primarily a buyer's market or a renter's market?

The answer to these and other questions will help you understand if your rental property has the potential for success. Also make sure you research the quality of living in the community. For example, in Crystal City, a popular area for real estate investment, there is a thriving community with plenty of dining opportunities, recreation and education. The features of the community are what will make it popular for renters.

Live briefly in the area

You can learn quite a lot about a community through your market research, but it's hard to truly know a place without living there. It's even more difficult when you live in another state or country. By living for a short time in the area, you can learn about the personality of the community and view its potential from the inside.

You don't have to sign a full lease. When you look for apartments for rent in Crystal City, you'll find many opportunities for short-term leases. You'll have enough time to really get to know the place without  having to make it your new home. Living in the area will also make it a bit easier to tour and evaluate properties in person, as well as to sign all the closing paperwork.

Monitor similar properties

One of the best ways to learn about the potential success for an investment property is to monitor the success of similar properties. Considering buying an apartment building in VA? Take a look at the occupancy rates and rents of other apartment buildings in the community. If others are struggling, it's probably not a good area to buy. If everyone is thriving, there is likely still demand in the area.

Inspect the property

Even hot markets like New York or Los Angeles have dud properties. You can't just pick a good community; you also have to pick a great property. Inspect the property yourself to get a feel for its potential, but follow up with a thorough, professional inspection.

Problems aren't necessarily a deal breaker. Some of the best properties are fixer uppers. Just make sure you have a thorough understanding of the problems that are present, how much it would cost to fix them, and what the impact would be on your revenue potential. In other words, will the cost of future rents outweigh what you'll pay in repairs?

The U.S. is a great market for real estate investment. Make sure you spend your dollars wisely by evaluating all your options and making the right selection. Using these tips can help you find a winner. 



Jo Thornley

About the author

Jo joined Dynamis in 2005 to co-ordinate PR and communications and produce editorial across all business brands. She earned her spurs managing the communications strategy and now creates and develops partnerships between BusinessesForSale.com, FranchiseSales.com and PropertySales.com and likeminded companies.

@BusinessMaiden

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