Any form of investment has its attendant risks, which is why it’s generally recommended to diversify your assets so that you’re cushioned against any problems in case one investment goes south.
Read on to learn more about investing in CRE in Staten Island, NY, the available commercial property for sale in Staten Island, how to reduce your investment risk, and how you can generate maximum earnings from your investment.
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Types of CRE available on Staten Island
Prospective investors eyeing Staten Island for their next investment opportunity will find that this borough offers a good mix of residential properties and CRE geared toward retail and manufacturing. Among the commercial property for sale in Staten Island, you’ll find mixed-use developments, smaller spaces that could accommodate a boutique or a restaurant, multi-story buildings, strip malls, and spacious office buildings.
Some properties already have existing tenants, which means that you’ll be able to receive an income almost immediately. Staten Island is also an emerging industrial and manufacturing hub, which means that warehouses are becoming part of its property mix.
But CRE isn’t just all about catering to businesses. Residential properties are considered CRE as well, and residential buildings for sale in Staten Island include luxury buildings consisting of several condominium units or apartments and even mixed-use homes with space for a clinic or an office, or ones with residential units on the second level and office and retail space on the ground level.
Impact of CRE on the local economy
Having CRE available is always a boon to any location. Major companies will be more keen to invest in a town if all the necessary infrastructure is already in place, making it convenient for them to set up shop. Their presence will also create more jobs, thus pouring money back into the local economy.
According to the National Association of Industrial and Office Properties (NAIOP), the Commercial Real Estate Development Association, in New York City alone, commercial real estate development contributed $27.1 billion to the state economy, generated $10.2 billion in wages and salaries, and created and supported 160,772 jobs.
Offices and warehouses aren’t the only types of CRE that provide benefits to an area. The availability of residential properties for rent can make a location more attractive to new residents. This is especially necessary because the population of Staten Island is projected to grow to a record-breaking new high as people are drawn to Staten Island’s quality of life and relatively lower cost of living (especially when compared to Manhattan).
Best practices for successful CRE investment
The general impression that people have when investing in CRE is that it’s simply a matter of purchasing a building and reaping instant rewards. Like with any investment, you have to be smart about what you’re investing in and how you use your money. At the same time, you also have to examine ongoing market trends to make sure that the time is right for you to invest in CRE or if there are any shifts in people’s preferences for CRE so that you can adapt accordingly.
Here are a few strategies to apply to make sure that you’re getting the most out of your CRE investment:
- Invest where the people are
You want to be sure that your property is located near places with large employment bases so that you and your tenants will benefit from their business. Your chosen CRE should also be easily accessible to increase the likelihood that people will find it a convenient place to do business.
- Observe current economic conditions
It helps to know what the prevailing conditions are not just on a national level but also locally. The demand for both retail spaces and multifamily housing continues to be strong, according to the National Association of Realtors. You do want to keep an eye out for how other sectors are faring, such as office spaces, the demand for which remains in decline. Keep in mind that factors like inflation will also mean that people will be shying away from CRE.
- Be familiar with the local real estate market
If you’re considering buying a building for sale in Staten Island, you want to do extensive research on things like permit data, any liens on the property, and the building approval plan to avoid any unpleasant surprises down the line. It’s also a good idea to find out about any possible hidden costs that come with purchasing CRE; a local real estate specialist will be able to help you in this aspect.
- Focus on current details, not just the projections
Relying on projections is all right if you’re considering purchasing commercial land in Staten Island, which would tend to be speculative. If you’re going for existing buildings, however, look at the current rental and leasing rates. This is the best way for you to get a handle on how much income you can expect against any possible maintenance costs you will have to shoulder on top of the purchase price.
- Invest close to home
And we mean this literally. You want to keep a close eye on your property after all. This is particularly relevant to first-time CRE investors who are still learning the ropes and want to know firsthand how it is to manage property. You could invest in CRE in a different city or state, which means that you’ll have to hire a local property manager. But that’s an additional expense that you might not be prepared for if you’re a first-timer, and keep in mind that a property manager might not extend the same amount of attention and dedication that you can to your investment.
- Ensure that you have sufficient funds
You might already have the money to purchase the property and to pay any necessary fees to the city, but there are other costs to consider as well, such as maintenance and upkeep. This is why you should have a budget set aside for when you need to do renovations, among other situations.
This is just a few of the things you can do when starting to invest in CRE and making sure you do it well.
Upgrades to consider to increase market rate
Owning CRE requires, aside from sufficient funds to tap for any purpose, a vision for the property’s image and reputation, as well as a proactive approach to keep it profitable and attractive to tenants. You can add value to your CRE by making a few upgrades, such as the following, that will boost its aesthetic appeal and allow you to increase rent:
- Improve security
Investing in keyless entry systems, shatterproof glass for windows, alarms, and cameras can provide peace of mind for your tenants and their guests. It also helps build up your property’s reputation if people know it’s a safe place to visit.
- Spruce up the outdoor spaces
Outdoor areas are a huge attraction nowadays and will make your property look more welcoming. You can create a relaxing outdoor area around your property if any room is available. If not, you can simply opt to improve the landscaping, freshen up any signages, and make sure that the parking lot and sidewalk around your property are in good shape.
- Add some modern touches
This won’t require you to overhaul the property. It can be something as simple as switching to energy-efficient lights and making Wi-Fi available throughout the building.
- Instantly address what needs to be repaired
You might want to put off things like a crack in the wall, a burned-out light bulb, or a broken sign. But you can be sure that your tenants and guests will notice them, and this will drive down the image of your property. Fix them right away before any issue gets worse. This also means you can avoid more costly repairs in the future.
- Update the exterior of the building
It’s the first thing that tenants and guests see, so you want to give them a good impression of your property. It’s hard to justify charging a certain amount for rent if the outside doesn’t look particularly attractive. Even a fresh coat of paint and new signage will do wonders.
Making sure your CRE is updated could be a significant deciding factor for would-be tenants looking for a modern space that is safe, convenient, and equipped with all the necessary amenities.
Marketing and advertising for CRE properties
So you’ve freshened up your CRE and you’re prepared to handle transactions. Now you have to make sure that people are aware that you’re welcoming tenants. It’s not enough for you to simply hang a sign saying “Space for lease/rent.” These days, you have to reach as many people as possible and create a positive impression of both your property and the location too.
- Establish your property’s brand and identity
Some recommend giving your building a name; it could simply be the address, or it could be a name related to the town. Basically, you’re free to think of any name that could set it apart from other buildings.
- Set up a website as a basic marketing technique
Furnish it with clear, well-lit photographs of the exterior and the spaces for rent, and be sure to include details such as the size and the nearby locations and establishments. Make sure that the content is optimized for search engines and that you provide regularly updated content so that anybody looking for a place to rent or lease will know that your building has available space.
- Create video content that will showcase your property
A well-made video should depict the space and the types of establishments it can accommodate. A 3D walkthrough of the space will also give clients a clear idea of the available space and how they can use it.
- Use social media to reach potential tenants
Just make sure you post regularly, keep your contact information updated, and respond promptly to inquiries. If your CRE houses various businesses, it would also help if you post every now and then about them, their products and services, and any promotions. It’s free publicity for your tenants, and any future ones will be reassured to see that you’re just as interested as they are in seeing their business grow.
Find the right commercial property on Staten Island
A smart CRE investor knows that they can’t find the perfect investment property on their own. It’s always a good move to work with experts who know the market well and are in step with your goals.
The licensed NYC real estate team at Casandra Properties Inc. has extensive experience in working with aspiring CRE investors. Top Realtor Casandra Zappala has been in the business since 1979, parlaying her expertise in commercial property for sale in Staten Island for the past 44 years. As a woman-led business, Casandra Properties Inc. has completed more than $1 billion worth of real estate transactions over the past 10 years. They’ve worked with Dunkin Donuts, Walgreens, Telco, TD Bank, Commerce Bank, MetFood, Marathon Bank, Northfield, HSBC, Burger King, CVS Pharmacy, Capital One, Charlie Browns, White Castle, Checkers, 7-Eleven, among others.
Casandra Properties Inc. represents residential and commercial properties, multiple dwellings, shopping plazas, industrial, vacant land and more.
Be part of the success story. Take your first step in investing in commercial property for sale in Staten Island. Call 718.720.0126 or contact us here.