NEED TO RENT OR BUY SPACE FOR OFFICE OR COMMERCIAL?
Tips for commercial properties search
The rental fee for space takes the biggest chunk in your CAPEX list when you start your company or business.
Nowadays, there is a list of start-up property technology (proptech) companies that can help you sort out hassles, be it finding the perfect space and location, the one that fits your budget the most, or even how to pay the rent in installments!
Here is the list.
Lamudi is one of start-up property technology companies with more than 1 million properties listed at Lamudi.co.id including new and second-hand properties covering from commercial units to houses, apartments, and lands, and various specifications and prices to choose from. All the properties in the list have gone through a rigid qualification process hence the accuracy of data quality is top-notch.
Lamudi stands out in the competition by also educating the people on how the proper process of property buying and selling should be done.
Known as SpaceStock now after this start-up proptech company is rebranded from SewaKantorCBD. After being rebranded, the company broadened its business sector which is now also covering commercial properties and houses. SpaceStock provides a list of properties and professional agents ready to assist customers’ inquiries.
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Gradana.co.id is a platform where customers and funding parties meet, especially when installment is needed for a down payment. In the initial stage, Gradana will facilitate the funding of a property unit in the primary market from a developer who is already bonded in cooperation with Gradana. The installment that is offered by Gradana can be up to 36 months then the rest of the payment can proceed to commercial banks.
Gradana is offering a variety of products to fulfill the demands from the market which are GraDP, GraSewa, and even GraRenov - for any of your renovation projects.
CloseBuy is an integrated mobile application and platform in the Asia Pacific that provides a "One-Stop Marketplace" (buy and sell, rent in the primary and secondary market). The platform is applicable for all property companies or individuals, direct customers, and all practitioners (buyers, sellers, property agents) in the commercial and housing property industry.
Cicilsewa was established in 2018. Though considered as a new player in start-up proptech players, Cicilsewa made a breakthrough after seeing that there are spectacles in the current property rental fee. The obligation to pay rent annually has deterred people from renting a property. To overcome this, the three young founders of Cicilsewa provide a smart solution to rent a property.
In early 2020, Cicilsewa initiated a partnership with J Trust Bank. Both companies signed a Memorandum of Agreement which stated the financial support from J Trust Bank to Cicilsewa. This partnership is aiming to strengthen Cicilsewa's position in the market, to provide wider options of houses, offices and commercial spaces to be rent out, and a more subtle way of installment for the rental fee.
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Eventually, when business is running well and you start making profits, then you decide that you will step up the game by buying a commercial property, here are some hints to help you determine when is the right time to buy.
Choose the best fit location and seek for a steady city growth
A consistent growth in the city is a good indicator of location in where to buy commercial property. Find properties that can be rezoned to higher density uses. These properties are usually located on busy roads. Make a research also on the demographics and local economy of the area and make a hypothesis. Look at similar properties and ask yourself, is the market growing or shrinking? Are people in the area employed or struggling to find employment? These few questions will help predict the longer term prospects for the property location.
Consulting with a CRE (Commercial Real Estate) Professional
Both residential and commercial investors need to work with a CRE professional or agent who can guide them toward the best ROI vehicle for their specific investment parameters. It is important to partner with a CRE professional that has extensive knowledge not only on the real estate of a specific area but also in the actual commercial sectors and their economic patterns. As buyers or investors, you will also need to analyze the data and leverage the knowledge of the CRE professional.
Explore CRE Marketplaces
Investing has never been easier or more secure now that there are many investment opportunities available on 24/7 at CRE marketplaces. The recent financial transformation of the CRE industry through blockchain technology enables investors to easily buy and sell properties.
Keep monitoring the market trend
Pay attention to the ever-changing market. Commercial real estate market varies by type and by market or submarket. Currently, industry is booming due to the direct-to-consumer shift in buying and the high demand for warehouses. Spaces in shopping malls are declining as people shop more online. Warehouse space to support home deliveries would be more desirable than a retail shopping mall right now.
Think about how the next few years will allow investment assets to be used and what risks are posed with it in comparison to what opportunities it creates or facilitates. Keep paying attention to what the market trend is. Today, migration patterns (urban to suburban) also create demand in areas or increase vacancy in others.
Check on the price, study the Cap Rate and use Long-Term Financing
The initial stages are also to check on the price against historical data and wait until CRE values are stabilized. The current pandemic has seen residential real estate prices soar, while CRE values are beginning to plummet in many locations. Wait until CRE values have stabilized before buying.
Focus on Capitalization Rates & profitability (capitalization rate is calculated by dividing a property's net operating income by the current market value).
Understanding where interest rates are, knowing where you are in long- and short-term debt cycles and being rigorous in underwriting. Run thorough scenarios to be sure that if something happens unexpectedly, the existing cash flows can weather the storm.
To wrap up, savvy investors or buyers with good fundamentals and strong constitution should find opportunity in any market condition. Stick to what you know best by identifying an asset and talking to industry experts.
The greatest value and return on an investment property is realized at the acquisition. The best time to buy a property is when you can afford to. There’s no need to wait for a down market where you try and get a "steal." If you can afford to buy, then buy. If you cannot afford to buy, then don't. So, buy smart and happy hunting!
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