Investing in commercial real estate: benefits and risks

Most experts claim that the purchase of commercial real estate in Kharkiv, with a competent approach, can become a highly profitable investment that provides stable profits. Among the most popular options, non-residential premises from the developer are distinguished as the most convenient and safe alternative. However, from a practical point of view, property in the secondary market often wins. Entrepreneurs acquire premises not only for their own needs, but also for leasing.


According to the classification, there are 4 main types of commercial real estate: retail, industrial, offices and warehouses. Most of the areas are related specifically to retail (shops, beauty salons, pharmacies, etc.) and most often entrepreneurs seek to buy premises located in places with saturated pedestrian traffic, which increases the number of potential customers. You should also understand the specifics of the place and the level of income of the people who are in it for maximum profitability. For example, a high-end restaurant in an industrial area with factories will bring almost no profit, but a small buffet is the opposite. All this confirms the idea that it is necessary to pay attention to the peculiarities of the location.


Usually, such a business, with the right approach to its implementation, brings in income twice or even three times more than the rental of residential premises. However, given that the prices for commercial real estate, both from the developer and on the secondary market, are impressive, then you need to carefully consider the business plan and ways to implement it. Therefore, small business owners often start by buying LFA or street retail, which are significantly cheaper. In big cities, the demand for such premises is actually always high, and if tenants invest in cosmetic repairs and furnishings, then this becomes a kind of incentive to prolong the lease.


In the absence of experience in this field of activity, it is best to hire a lawyer, since you will have to contact not only the tenants, but also with the city government. In addition, you will need a specialist who will help you draw up a contract competently.