6 Vital Numbers You Need When Researching A New Area
This time, I talk about the importance of market research and due diligence when entering a new market location. I'll share six vital numbers that investors should know, including local area square foot rates, competitor occupancy levels, operating costs, build-out costs, market capital costs, and cap rates. I also provide methods for gathering this information, such as online searches, talking to agents, reviewing competition, checking out developments, and networking. KEY TAKEAWAYS It is important to gather information about the local area, including the square foot rate or desk rate, competitor occupancy levels, operating cost per square foot, build-out costs, market capital costs, and cap rates or yields investors are seeking. Methods to gather this information include online research, talking to agents, reviewing competition, checking out developments in the area, looking at the requirement list, placing ads, and networking. It is crucial to physically visit the area and observe what is happening on the ground and where investments are going. Negative or positive findings about an area should not immediately rule it out, as problems may lead to better opportunities. Ultimately, it is up to the individual to gather and analyse the information to make informed decisions about investing in a new market location. BEST MOMENTS "What are the steps to ascertaining market demand in a new market location that you haven't owned anything in before?" "Nothing beats getting in the car or on your bike if you're that way inclined, and taking a look about on the streets. Only then do you see what sidenof the tracks are better and where the investments are going." "If an area is up and coming, there are developments going on, but maybe not too much, then you know those are some big ticks ✅ in the boxes." JOIN THE NETWORK If you want to learn more about investing in Commercial Property why not consider joining the CPI Network? A community of active investors who collaborate, share experiences and empower each other in their Commercial Property endeavours. Useful Links: CPI Website - https://commercialpropertyinvestor.co.uk/Our Sponsors - https://commercialpropertyinvestor.co.uk/podcast-sponsors/Property Investing, Commercial Real Estate, Strategies, CMO, Lease, Licence Agreement, Cashflow, Vacancy rates, Agents, Best Commercial property podcast, how to buy, Valuations, ROI, residential, assets, Flexspace, office space, How to get started: https://www.commercialpropertyinvestor.co.uk/