The last few years set to be a good season for U.S. property especially the retail property sector. However, commercial real estate investors and retail property landlords own moves will continue to make a significant difference in short and long term returns.
So what best practices and intelligent investment actions can help commercial investors maximize their retail property potential?
1. Technology
Upping the tech on your property and for your tenants can make a massive difference. Competition is hot between retail shopping centers today. Those with the best technology, technology that helps consumers and tenants can make a massive difference in appeal. New technology like the Apple iBeacon being promoted by digital developers like PassBee Media is upping the game of individual retailers with laser precise location based mobile marketing for increasing same customer and store sales while reducing labor expenses. Better performance for tenants means better building performance, unit demand, rents, tenants, value and income, and returns growing exponentially from all of these factors compounded.
2. Community
Individual retailers and the building as a whole will perform far better now and over the long run if some effort is made to build in community and build loyalty by going above and beyond just being bricks and mortar.
3. Great Leases
Amateur retail investors are often preoccupied with simply filling units. Good leases make all the difference. A great lease makes all the difference in short and long term performance and returns. It determines how motivated renters will be to perform, the opportunities to raise rents, and the financeable and salable value of the property in the future.
4. Asset Protection
Even though we may be set for some of the best times for real estate ahead and many are rushing ahead, bullish on appreciation and rising rents, asset protection should still be a significant priority. This means keeping an eye on proactive maintenance, taxes, insurance and liquidity.
There is no question property management makes all the difference. So do your homework and select the best property management service that will reduce liability and increase profitability.
Check out our recent post: The Top 6 Dangers of Hiring the Wrong Property Manager.