Fine Tune Your Commercial Real Estate Crystal Ball

Fine Tune Your Commercial Real Estate Crystal Ball



Don't you wish you had a​ crystal ball that showed you what is​ to​ come in​ the​ future? a​ simple wave over the​ crystal ball, the​ mutter of​ a​ magic word, and​ your entire future is​ there, revealed in​ front of​ you. Now that you know what is​ to​ come, you can prepare and​ move accordingly so you can be ready for​ what the​ now identified future holds.

Unfortunately, this crystal ball does not literally exist, but in​ commercial real estate there are many tools that you can use that act like a​ crystal ball. They can show you the​ future in​ an​ indirect way so you, too, may plan and​ move accordingly in​ order to​ take advantage of​ the​ market place.

Fining tuning your commercial real estate crystal ball is​ really a​ matter of​ paying attention, doing some basic research, and​ being on top and​ aware of​ all elements in​ your comfort zone, or​ concentrated area of​ focus and​ influence. it​ does take vision and​ an​ element of​ creativity to​ really fine tune your crystal ball, and, for​ some, it​ is​ the​ best aspect of​ commercial real estate! Being able to​ predict, envision, and​ then create something that at​ one time did not even exist, not even in​ an​ idea, and​ then search out the​ resources to​ create and​ put the​ plan in​ motion is​ a​ commercial real estate insider's dream. When done effectively, it​ can be very satisfying and​ lucrative!

You should already be doing many things that assist you in​ predicting and​ planning for​ the​ future, which is​ extremely important in​ commercial real estate. if​ you can see an​ opportunity coming before it​ actually presents itself, then you are able to​ prepare for​ that opportunity before anyone else, and​ reap the​ benefits. These things may include driving the​ streets of​ your community to​ see what land and​ buildings are for​ sale, what centers are vacant for​ leasing, attending planning and​ zoning meetings, reading the​ local newspaper for​ economic and​ real estate changes or​ trends, as​ well as​ researching other cities and​ how their market may affect yours in​ any way, shape or​ form.

As a​ real estate insider, it​ is​ pertinent that you are up to​ par, and​ even an​ expert in​ your comfort zone. These things listed above are how you are constantly informed and​ a​ step ahead of​ other real estate people, as​ well as​ your own market.

Besides doing these things religiously, and​ always analyzing the​ data that you collect, there area a​ few other specific tools that will allow you to​ see into your commercial real estate future and​ identify opportunities that others will miss.

The first is​ a​ city's future land use master plan or​ map that shows the​ future zoning and​ use for​ all the​ land within a​ city's limits. Some cities may not have one if​ they are too small and​ not looking for​ growth. However, most cities do have master use plans that are used to​ dictate the​ entire future of​ a​ city's economic make-up.

This map is​ used to​ plan for​ growth so that all elements of​ a​ city are controlled. Zoning and​ use may change for​ operating properties; others may remain the​ same. There is​ the​ possibility of​ raw land to​ be annexed into the​ city, having a​ specific use, offering huge opportunities to​ the​ commercial real estate investor. There may be a​ need to​ tear down or​ renovate old properties, and​ develop them for​ a​ different use.

The possibilities of​ what a​ future land use map holds is​ gold in​ the​ eyes of​ an​ investor, and​ extremely important to​ all those working in​ commercial real estate. Refer to​ this map, and​ actually visit the​ locations of​ where there is​ change to​ identify opportunities. as​ every area is​ different, you will be amazed as​ to​ what opportunities will unveil themselves when you bring to​ it​ a​ little vision, creativity, and​ insider information regarding the​ zoning and​ use of​ a​ property.

Another tool to​ see into the​ future is​ the​ economic forecast for​ your area. By looking at​ both the​ past and​ future per capita income, population growth rates, housing costs and​ other such data that can be found through the​ census and​ local Chamber of​ Commerce, you can see the​ overall economic environment of​ your city and​ how it​ is​ performing.

Perhaps a​ continuing decrease in​ population means people are moving out of​ the​ city, telling you not to​ invest in​ new home or​ apartment development in​ that area. Or, the​ growth has been so extreme that the​ city is​ in​ desperate need of​ commercial property in​ order to​ support the​ influx of​ people. You can definitely plan on how you are going to​ move in​ the​ market with this information by your side.

The final tool I urge you to​ utilize when predicting your commercial real estate future is​ already approved infrastructural changes within your city. This will require you to​ attend city meetings regarding zoning, planning, development, etc. There could be discussion of​ a​ new development a​ year or​ more before it​ actually occurs, and​ once you hear about it, you can start putting your own ideas into place.

As I am sure you already know, large, influential, infrastructural changes can greatly increase the​ land values of​ properties that surround them. for​ example, a​ large strip mall being developed will increase the​ value of​ all the​ land surrounding it, as​ well as​ possibly call for​ a​ greater demand of​ residential units, and​ an​ increase in​ the​ lot and​ rental prices that can be charged according to​ the​ new market.

Let's say that you hear two years in​ advance about a​ strip mall that will begin development after it​ is​ approved. You are then going to​ get a​ jump on all competition, look at​ the​ site, the​ land surrounding it, and​ the​ opportunities it​ may offer. Can you purchase the​ now extremely cheap land adjacent to​ this site, or​ perhaps the​ poor performing apartment complex in​ anticipation of​ this new development so that you may benefit from the​ price increase this major infrastructural change is​ going to​ cause?

Absolutely!

These things happen all the​ time, and​ I urge you to​ be a​ visionary and​ look to​ the​ future. After all, this is​ where a​ majority of​ commercial real estate profits is​ made- by creating something that either wasn't there, or​ improving upon what is​ there.

As you can see, you may not have a​ crystal ball that does all the​ work for​ you, but I promise that if​ you use these tools and​ follow these guidelines, you will be preparing yourself for​ great opportunities that others, quite simply, will overlook. it​ will take some effort and​ constant dedication. However, the​ results that you yield will be way worth it. Actually, it​ is​ much easier to​ be the​ first mover, rather than suffering the​ increased land prices and​ changes after a​ development is​ already in​ place or​ even underway.

Realize your power to​ predict the​ future and​ plan your goals accordingly! You will be successful with these tools, so implement them today.




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