subject: Accidental Commercial Real Estate Riches [print this page] Accidental Commercial Real Estate Riches Accidental Commercial Real Estate Riches
Some of us who are business owners often purchase properties as a location to do commerce. Then we hold it for many years, doing business and not worrying much about what may be happening to the property's value.
Consider buying a building where things are beginning to improve in an existing community or city center.
As an example, I know of a family retail store that has been doing business in the same location for nearly 50 years.
Its town location was practically forsaken by other businesses when shopping malls and big box stores almost turned the downtown areas a thing of the past. When they considered relocating to the mall the rent seemed way too expensive and the customer mix appeared inappropriate for their needs. Since the retail business was not very location sensitive they stayed where they were and bought two other properties adjacent to their original property.
Amazingly the quaint Victorian buildings of the main street eventually made a very nice comeback, housing restaurants, professional offices, hotels, apartment buildings, condominiums and shops. This kind of resurrection is not really that rare. If they wanted to sell either the properties or the business or both there would be plenty of interested buyers, at least a number of of them real estate investors looking for rental income.
The real estate purchase they made was secondary to the business, but it was still a teriffic investment!
For many businesses you have to have a physical location to do business, but also try to make the real estate pay off. In a number of cases the land just might ultimately actually be worth a good bit more than the business. More than a few property owners have made this happy discovery.
So keep an eye out for the trend of development in your community. Take notice of under used or abandoned property that might be reused to serve your business needs and your investment goals. Your reward could be a good bit better if you can educate yourself to recognize unperceived value in commercial real estate in your city or town. Donald Trump always says, "Make your money on the front end," when you buy right and then sell or develop at the right time for a tidy profit. Buy low, and sell high. It's the ideal business model to follow.
