Your decision to invest in Alaska commercial real estate is not one to be taken lightly. In fact, before you even begin the search for a commercial property in the Anchorage area, you should have your finances sorted, a strategy in place, and done the proper due diligence in order to make this big step as successful as it can be. One such way to be prepared is to look at how others in the area have succeeded in the past, the steps they’ve taken time and time again to come out ahead.
As your local commercial real estate experts in Alaska, Northern Edge Real Estate has included five investing tips below that have stood the test of time.
Invest, Don’t Acquire
The motive behind investing in Alaska commercial real estate is to make a profit or produce a steady stream of income, so pay attention to the potential return when you’ve found a property. Remember, if you have invested in a property that produces no income, you are simply acquiring properties. You want to be an investor, not acquiring a portfolio of properties that do not meet your financial goals.
Think Long Term
Just as with a residential property, a commercial property will need a certain amount of work to maintain. You will need to think in the long term when it comes to investing as if you plan to hold on to the property, chances are high it will need repairs over time. Consider these potential repairs as you budget for this investment.
Focus on One Property Type at a Time
If you’re a new investor in the Alaska commercial real estate market, it may be wise to focus on one property type at at time— office, retail, etc. In order to make your endeavor successful, you will need to dedicate adequate time and attention to each property and having a portfolio of those you cannot easily manage will only be detrimental to you in the long run.
Work with an Expert
Investing in Anchorage commercial real estate is a major milestone. You will want to have someone in your corner who has navigated the process before and knows the in’s and out’s of such steps as negotiating a commercial real estate lease and identifying risk. Our experts at Northern Edge Real Estate are available to help you with your investment strategy and find the best property for your needs and goals.
Protect Yourself and Your Investment
While there are a few commercial property types that can withstand an economic downturn, you can never go too far to protect yourself and your asset. You will need to be careful about the type of property you choose, monitor factors like location and tenants, be realistic about your return, and understand the terms of your investment and how much you actually own.
If you are ready to search for Alaska commercial real estate properties or have questions about how you can make your investment a lucrative one, contact Northern Edge Real Estate today!