As one of the fastest growing states in America with no personal income tax, Florida is a prime investment location for commercial real estate investors. If you’re considering buying, selling, or leasing real estate in Florida, you will want to be prepared for different factors that might influence your investment property. Keep reading for five things to consider when investing in commercial real estate in Florida.
1. Research Market Conditions
When preparing to invest in real estate, the first step is to do your research. What is the size of the market? Is it growing? Can the market sustain another major player? These are all questions to consider. One of the biggest benefits of investing in Florida real estate is that market conditions are extremely strong. The population growth and strong economy make for a promising future for real estate investors. Not only should you do your own research on the market, but you should also work with a commercial real estate brokerage that is knowledgeable and experienced in the region.
2. Estimate Property Insurance Costs
One of the biggest concerns for investors in Florida is the weather. The ocean provides amazing views and a beautiful backdrop, but it can also pose potential problems. For example, hazard and flood insurance policies are usually more expensive, especially for properties near the water. The good news is that buying a property built after 2002 can make insurance expenses more affordable. Anything built after that date is considered up to the latest hurricane code and is therefore more cost effective. An experienced real estate agency can help you project potential insurance costs as you craft your budget and prepare for your investment.
3. Prepare for Building Maintenance
Beaches make Florida a desirable destination, but the environment can have an impact on building maintenance. Without proper planning and upkeep, sand and water can increase wear and tear and affect a building’s aesthetic appeal. Regular cleaning and maintenance are essential. Consider partnering with a dependable property management company that can ensure your investment is cared for properly.
4. Schedule Inspections Before Buying
Before you purchase real estate in Florida, it’s essential to have the building inspected by a licensed general contractor. A GC can evaluate and assess the condition of the building, including the roof, HVAC, electricity, and plumbing. They can also identify any existing damage from past hurricanes, flooding, or other hazards. The inspection process will ensure you’re aware of any necessary renovations or repairs prior to closing.
5. Plan Ahead for Lease Management
If you’re planning to lease your investment property, it’s important to consider whether you want to manage the leases yourself or hire an expert to do so. Managing your own leases will keep you connected but could also weigh you down with details and issues. It takes a lot of time and energy to manage leases, which begs the question, “Is it even worth it?” That’s why so many landlords hire a commercial real estate brokerage to manage their leases. It saves them countless hours and gives them the peace of mind that the property is being managed well.
Whether you’ve already decided to purchase real estate in Florida or you’re just beginning to consider it, these are all things to consider. If you decide to buy or lease a property, your best bet is to work with an experienced and trusted commercial real estate brokerage. With 25 years of experience in commercial real estate in Southwest Florida, AJS Realty Group is equipped and ready to help you with all of your commercial real estate needs. From buying and selling to leasing strategy and property management, AJS’s proven expertise and personalized service will shine through. Contact us today at 239.596.9500 to get started.