Property investment strategies to incorporate in your investment pursuits
Gain valuable insights on how to strategically approach commercial property investments.
Property investment strategy: Why is it important for commercial property investing?
Imagine that you’re a seasoned commercial property investor, known for your savvy approach when making investment decisions and lucrative deals. Despite your success, you find yourself facing unexpected challenges that could affect your investment portfolio negatively. If you’re determined to overcome these challenges, it would be wise to map out a comprehensive property investment strategy.
To overcome these challenges, you need to conduct your research and stay up to date with the trends affecting the areas where your properties are located, and in potential neighbourhoods where you plan to invest.
Brushing up your knowledge by enrolling in property investment education courses or looking out for educational resources can help. You should also reevaluate your investment strategy by learning from mistakes from your previous investments.
It is just as important to set up criteria for property purchasing, narrowing down your selection of ideal properties to the ones that align with your long-term investment goals. By having a well-defined strategy in place, investors can confidently navigate the complexities of the commercial property market.
Here are four property investment strategy examples that you can leverage to future-proof stability and hike up your investment portfolio’s earning potential.
4 lucrative strategies for commercial property investing
Value-add investing
This involves purchasing commercial properties with untapped potential or in need of renovations and improving them to increase their value, eventually selling or leasing them at a higher price. You can identify properties with underutilised space, outdated amenities, or inefficient operations, and implement cost-effective upgrades or repositioning strategies to attract higher-paying tenants or buyers, helping you maximise returns on your investment.
Triple-net leasing (NNN)
NNN investing entails acquiring properties where tenants are responsible for covering operating expenses such as property taxes, insurance, and maintenance costs, in addition to rent. This strategy provides you with a steady stream of passive income while mitigating operational risks and management responsibilities. By leasing properties on long-term triple net leases, you can secure predictable cashflows and potentially higher returns over time.
Development and redevelopment
Development and redevelopment strategies involve acquiring land and or existing properties with development potential, obtaining necessary approvals, and constructing or renovating commercial buildings to meet market demand. You can capitalise on emerging trends, demographic shifts, and urban revitalisation efforts to create value through new construction or adaptive reuse projects—an approach that helps you gain big returns through appreciation.
Sale-leaseback transactions
Sale-leaseback transactions involve selling commercial property to a buyer and simultaneously entering into long-term lease agreements to continue occupying the space as a tenant. This strategy allows property owners to unlock capital tied up in real estate assets while maintaining operational control and occupancy. This allows you to benefit from stable cashflows generated by lease payments or potential tax advantages, making it a lucrative pursuit.
Why work with Unikorn
At Unikorn, we are dedicated to assisting new and experienced commercial property investors in building a profitable, cashflow-positive commercial property portfolio. Our experts will guide you through every step of your investment journey, eliminating confusion and aiding in wealth growth.
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FAQs
Evaluate location, property type, tenant quality, lease terms, market demand, and potential for value appreciation. Conduct thorough due diligence, analyse financial metrics, and consider long-term trends to make informed decisions aligned with your investment strategy.
Define your investment objectives, conduct market research, identify investment opportunities, perform due diligence, negotiate terms, and execute transactions. Regularly monitor portfolio performance, adjust your strategy as needed, and seek advice from experienced professionals to optimise your investment pursuits.