With the rate at which new commercial real estate is being built, it is obvious that commercial space is in high demand. Unfortunately, not every company is able to have a new building built or has the budget to lease space in these new vacancies. There is another, very feasible option in commercial property investments - re-purposing an older building. Whether buying a property to lease or use, an investor with the right vision may find new usage for an older, overlooked building.
Older Buildings Are Everywhere
As business expands in major commercial areas, so does the need for more commercial space. Many older buildings, and even entire neighborhoods, have been abandoned or used for relatively insignificant purposes. When trying to sell this type of commercial real estate, it may stand empty and unused for a long time. The reality is, most cities blocks of older properties waiting to be sold, many in a state of forgotten disrepair. These buildings can provide the perfect venture for entrepreneurs seeking to invest in commercial property to find the proverbial real estate needle in the haystack. The possibility of turning a forgotten eyesore into a preferred, income-producing property is indeed possible when the right building is adapted for the right use.
Business and Demand Is Moving Back to the City
Current research on business and real estate trends suggests that demand for more urban and inner-city locations is increasing - again. This is partially due to increasing numbers of younger business people moving into the city to live. More amenities and shorter commutes are becoming preferred again, giving investors great opportunities to repurpose older, even historic buildings. Whether the vision is one of a creative office environment from an old, historic home, or turning old warehouse space into loft apartments or trendy eating establishment, many metropolitan areas are enthusiastically welcoming such projects.
Repurpose the Right Way
When purchasing older buildings to convert into business properties, it is essential to understand local commercial property trends. Those investing in this type of project must be sure that the end result is what young professionals want. Based on building location, type, size, and shape, creative ideas can explode with older buildings. When repurposing commercial real estate, the goal should be to find the best way to add value to a local aged structure by creating a building wanted by the local market. The classic charm, the history, or even the way in which an older building is modernized, can turn an unwanted space into the most desirable commercial rental in town.
Understand Costs Involved
Restoring or remodeling historic older buildings can be expensive and time-consuming; however, it can really pay off when the work is completed. Commercial investors must realize that restorations can sometimes cost more than it would to simply tear down the building and build a new one. Therefore, it is essential to properly research the building and its location to gauge if a repurposed building will generate demand in that area. It is vital to choose the right building for the idea and establish a budget for restoration work in order to generate a return on the investment.
Repurposing older, unwanted, or unused buildings in up-and-coming urban areas is a great option when looking for commercial property investments, as demand for this type of product seems to be growing. What with an increasing need for commercial space in a city's downtown area, combined with increased demand for living space from those moving back into these areas, many old structures are literally getting a new lease on life. For those who buy and sell commercial real estate, it may be worth looking at these older, vacant buildings to see what kind of creative ideas may develop!