Charlotte NC Commercial - Blog #commercial real estate investing

Investing To Make Money

Sun, 01 Feb 2026 13:22:00 -0500

Investing To Make Money

When you make an investment in real estate, it is implied that you want to make money. The cash can come from direct income from the property or from capital gains from a sale after an increase in value. Either way, the investment must be managed, considered, and watched at all times. If the owner and manager are taking care of business, there may be ways to increase the income, and the value. There is always the possibility to make a sale for the right price and terms. Keeping aware of the market might bring an opportunity to make a tax-deferred exchange into a property with more benefits for the owner.

Real estate investors often own various kinds of properties. They may have a mix of commercial, residential income, land and groups of houses. These owners have an extensive portfolio of investment real estate.

Owners of portfolios of stocks and bonds meet with or call their broker often. Like seeing a doctor or dentist at regular intervals, it makes sense for real estate investors also to meet with their real estate investment representative or counselor at least a couple of times a year. Exchanging ideas with the professional who has the daily pulse of the real estate market can be profitable. At each meeting, the investor can plan on finding out the current market conditions that will have an effect on equities that are now owned or that could be acquired.

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Physical Inspection Of Investment Property

Mon, 01 Dec 2025 13:58:00 -0500

Physical Inspection Of Investment Property

When a buyer makes an offer on an investment property, it is usually only after a thorough inspection of all of the data that is available on the financial records of the building. The physical inspection of the property could be as important or more important than the rents and expenses.

Some investors pay more attention to the data than the structure. With a physical inspection on the potential investment property, a buyer may be able to:

Work out a better price.
Get ready for any upgrading or maintenance expenses.
Avoid catastrophic repair bills for detectable problems.
When actually purchased, get a higher return on the investment.

Where to Start

First, the investor needs to know what experts to call. He needs to know what needs to be inspected and how to do it. The property must be verified as physically sound and is a worthwhile investment.

There are some broad categories of problems that investment properties are subject to, and the type of expert that is needed for the inspection.
Soil Conditions. When a property is located on certain types of land, a professional soil engineer or geologist should be called. Property could be low lying or reclaimed land; a former landfill or dump area; on hilly or mountainous terrain; located at lakeside or seaside; has structures or piers, pilings, stilts, or other unusual foundation conditions. Is the actual foundation of the building dry and clean with no holes or cracks.
Drainage. If the property is located within a flood plain area, it should be carefully examined by a civil engineer. The buyer can check basements and interior walls for signs of water damage. Also an inspection of the plumbing system for any signs of leaks or signs of old leaks.
Elevators. If the property has an elevator, has it had the proper inspections in recent months? Elevators and electric systems should be inspected by professionals in those fields.
Fire Suppression System. Is the fire system inspection up to date?
HVAC. Representatives of the companies that manufactured or installed the heating, ventilating, and air-conditioning systems.
Roofing. A roofing consultant or structural engineer should be called to determine age, condition, ability to withstand loads, etc.
Pests. Pest control companies are able to check for termites and other damage-causing pests.
Environmental Inspection. Check for contaminants on or near the property.

Government Records

Check the local building department and see what permits were issued and when. Some records may also show when fire inspections or health and safety inspections were made. Any violations will be on record.

The plans and specifications of the building may also be on file. These may contain the names of the original architect, engineer, contractor and developer. The investor may wish to contact one or more of these if any questions need an answer.

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Major Categories For Commercial Investments

Wed, 01 Oct 2025 11:58:00 -0400

Major Categories For Commercial Investments

There are a wide range of opportunities out there in commercial properties. Commercial properties provide space for businesses, and the kinds of properties are as diverse as the businesses.

Following are the major categories of commercial properties:

Retail

In this category are properties that are rented to tenants who sell goods directly to the public. Under this main classification are the following:

Strip Center. A retail center with a straight line of stores.
Neighborhood Center. A small shopping center with a supermarket or drug store, typically having up to 50,000 square feet of rental space.
Community Center. A medium-size center, with about 50 stores and up to 150,000 square feet of rental space.
Regional Center. A large center, usually enclosed, with two to five department stores and from 400,000 to 1 million square feet of rental space with food courts, and recreation centers.
Super Regional Center. A large regional center, with 750,000 to 2 million square feet of rental space with much more than the average center with high-end restaurants & movie theaters.

Theme Center

A retail center designed around a common theme. Under this group are the following:

Off-Price Center: A retail center that caters to tenants offering merchandise at discount prices.
Factory Outlet. A retail center that caters to manufacturers who sell their goods directly to the public.
Fashion Center. A retail center that deals in high-priced, high fashion merchandise.
Car-Care Center. A retail center that caters to tenants who deal in automobiles and the automobile aftermarket business.

Office Buildings

Office Buildings that are rented to non-retail commercial users. These buildings are designed as garden, mid-rise, or high-rise structures.

Business Park

A group of rental buildings designed for office, manufacturing and warehouse users.

Warehouses

Buildings that provide rental space to users of bulk storage. There are two types:

Light Industrial. Buildings that cater to storage users.
Heavy Industrial. Buildings that cater to manufacturers.

Self Storage Units

Buildings designed to rent space to small storage users. Usually 25 square feet to 500 square feet.

Lodging

Properties that lease living space to individuals on a daily basis or longer. These properties can have price ranges from budget to mid-range to luxury. They may be marketed toward the transient, resort, convention, or commercial user. Under this category are the following:

Motel. A property in which a renter can park his automobile adjacent to his rental unit. This type of property is usually a garden type building with few amenities.
Hotel. A higher quality property, with more amenities than a motel. These properties can be garden-style, mid-rise, or high-rise in design. They usually contain such amenities as food and beverage services, conference areas, or health facilities.
Suites. A lodging property that offers a living and bedroom area.

Multi-Use

Properties that combine two or more of the following uses: residential, commercial (retail or office), or lodging.

Condominium

Commercial properties that are either converted or developed to be sold to the individual users. These can be either retail, office or industrial properties.

Single Purpose Buildings

Properties designed for a specific purpose, for example, a theater or a bowling alley.

Your Investment

Successful commercial properties give their users what they want and what they need. Some properties can be upgraded by renovation and a change to a different use.

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15 Critical Questions To Answer To Keep Your Real Estate Investment On Track

Thu, 01 May 2025 23:46:02 -0400

In this issue

15 Critical Questions To Answer To Keep Your Real Estate Investment On Track

Office Building Comparisons

Newer office buildings may fill up at the expense of older office buildings. Since new buildings cost more to build than the older ones, rents may be higher. The actual dollars-per-square-foot costs must be compared, along with other benefits that the tenant may receive, before a final decision is made by the tenant on staying or moving. One of the most important jobs of a leasing agent for a building with available space is to analyze other buildings to see if any tenant could be induced to move. Here are some of the items for comparison:......(more)

Factors To Consider For Any Commercial Investment

When any particular commercial building is under consideration for purchase, there are a number of factors that should be considered. Here are some of the more important points:.....(more)

How To Negotiate A Lease Termination

One or both of the parties to a lease of commercial or office space may want to sever the relationship prior to the end of the lease term. A tenant may want to terminate the tenancy, for example, because his business has grown since he first moved in and he requires larger quarters. A landlord may want to terminate the tenancy because there is a better prospective tenant available.....(more) Click Here For This Months Newsletter

How To Increase The Value Of Investment Real Estate

Sat, 01 Feb 2025 16:02:36 -0500

In this issue

Increasing Market Value Of The Investment

Since the value of a rental property is based directly on the cash return, adding value means increasing cash flow. When small investors set out to increase real estate values, the steps are in upgrading houses, duplexes, triplexes, etc., enhancing the cash flow and therefore increasing equity when the property is sold. When working with larger commercial and apartment properties be aware of the things that have the potential of adding value. Do the required homework on the property. A feasibility study can measure the capacity to add value. There may be many other measures that must be taken, such as market analyses, applications for new zoning, design and construction planning and a plan for marketing......(more)

Building On Leased Land

Building on leased land results in a separate ownership of that building and the land. The two owners, one of the land, and one the improvement, come together in one investment parcel. In this situation, the landowner wants someone to develop the land, but still wants to continue in ownership. The developer prefers to lease rather than buy the property. One owner wants the security of owning the land with a good lease to the owner of the improvement. The owner of the building puts up less money since the ownership of land is not part of the expenses in the development.....(more)

The Fair Cancellation Clause In A Commercial Lease

Whether a rental market is weak or strong, lease negotiations can be difficult when the landlord wants concessions that are different from the norm. One situation that happens is when the owner of an office building or other commercial property intends to sell when market conditions improve, whether that occurs next year or five years from now. Another is the holder of vacant or underimproved property who plans to develop it whenever market conditions justify. In the meantime, these properties must be leased to generate sufficient cash flow to pay operating costs and debt service. Such an owner will be amenable to giving significant concessions, including a low rental, provided the landlord can cancel the lease during the term....(more)

How Property Management Makes Asset More Valuable

Management of a building is not just handling problems as they arise and renting units, it is making the asset more valuable to the owner by concentrating on every aspect of the property. Some owners of very large income properties still do not take professional property management seriously and fall behind in values. The professional property manager is keenly aware of all of the recurring costs of a property and how they can affect the bottom line. The owner may applaud and give attention to a one-time saving on a “high-cost” item such as insurance on the property while overlooking the multipliers in the number of units......(more) Click Here For This Months Newsletter

What Is CPI and How Is It Used In Commercial Real Estate

Fri, 01 Dec 2023 23:45:33 -0500

In this issue

The CPI Escalation Rental Clause

Putting a CPI (Consumer Price Index) escalation clause in a lease is to make the lease fair to both the tenant and the property owner. A primary benefit of escalation clauses is they help protect against diminishing purchasing power related to inflation. The CPI measures monthly the average change in the prices consumers pay for certain goods and services such as oil and gas, healthcare, food, and housing.....(more)

The Industrial Flex Building Investment

A high percentage of speculative low-rise industrial buildings today are flex buildings making them a good investment. One of the most appealing aspects of flex space lies within its customizability. For example, if a tenant wants to increase their office space or warehouse space, they are easily able to do that with flex space due to the reduced improvement costs. A flex building also allows for the tenant to have more choices in the type of space their company needs now and in the future at a more affordable price. Developers are favorable toward the flex building as it will meet the needs of many modern sophisticated industrial building users.......(more)

The Conversion Of A Railroad Station

In many areas of the country, railroad stations are being re-awakened and brought back to a beautiful new life. The small town railroad station which had been closed down, boarded up and left to crumble into dust for many years is now being converted to a useful and desirable part of town. The large abandoned terminals which were once the busiest and most accessible buildings in a city are no longer deserted and deteriorating but have been converted to shopping centers, entertainment venues, and hotels. Stations along commuter lines in smaller towns are being used for small cafes, coffee shops, a flower shop and an assorted businesses to take care of the needs of the commuter.....(more)

Raw Land For Development

Land investment is much more complex than it was a few years ago. Because of expanded regulation and environmental concerns, the development process is much longer and so more expensive. The time from the initial raw land purchase until final sale of completed homes may be as long as 10 years.....(more)

The Single Tenant Market

Investors who can provide the housing that satisfies the needs of the single tenant will stand to profit. We all know that the number of persons living alone has increased. Figures from the census bureau show that households that contain only one person have increased 90% since 1970. There are now more than 20 million people who live alone, more than twice the number of twenty years ago. This trend is expected to continue.....(more)

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Negotiating The Termination Of A Lease

Mon, 01 May 2023 15:03:48 -0400

In this issue

Negotiating The Termination Of A Lease

Your Real Estate Investment Check-Up

Alternative Rental Plans

When there are vacancies in commercial buildings, tenants may feel that they are in a good position to seek concessions from landlords on new leases or in exchange for extending or renewing existing leases. Landlords are apt to make deals for two reasons: (1.) The landlord may be facing high vacancy rates, and (2.) The landlord also recognizes that tenants may also be suffering from declining business and are less able to pay the high rentals of a few years ago....(more)

Office Building Comparisons/li>

Newer office buildings may fill up at the expense of older office buildings. Since new buildings cost more to build than the older ones, rents may be higher. The actual dollars-per-square-foot costs must be compared, along with other benefits that the tenant may receive, before a final decision is made by the tenant on staying or moving. In many areas, there are a number of vacancies reported in office buildings. Most of this available space is in the newer properties. One of the most important jobs of a leasing agent for a building with this available space is to analyze other buildings to see if any tenant could be induced to move. Here are some of the items for comparison:...(more)

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How To Choose The Right Commercial Investment Property

Fri, 01 Jul 2022 14:47:20 -0400

In this issue

Choosing The Right Investment Property

No single property can fit all of the investment goals and rules an investor has set. Even if the investor tried to build a property to specifications, he would find some things “not quite right”. The investor is, therefore, wise to anticipate problems and have some basic strategies for dealing with them. Here are some suggestions to help the investor devise other approaches to meet special needs:....(more)

Lease Negotiations With A Corporate Team

A few years ago, senior corporate managers were able to make major real estate decisions by themselves. Now, a negotiating team will negotiate leases. This team may consist of legal counsel, finance department representatives, outside specialists such as real estate brokers or tenant representatives, design and engineering consultants, and others.....(more)

Drafting The Shopping Center Lease

When leases for shopping centers are being drafted, they can be more difficult than most other commercial leases. In a shopping center, the owner wants the leases to be as uniform as possible, but knows that each lease must have variations to meet the individual tenant’s particular problems in business and in certain size or shaped spaces. Here are some suggestions of items that should be covered in your shopping center leases.....(more)

Updated Information For The New Property Manager Improvements

There may be lengthy negotiations between the owner of a property and the management company before a management contract is signed. When the management plan has been worked out between them, the management company is hired and the manager takes charge of the property. At this time the manager must collect great amounts of information necessary to manage and control the property. Some should have been available from the owner, but all files must be updated and appropriate information collected, such as:...(more)

Your Real Estate Investment

Knowing what you can do in some investment situations can be the difference between an annual profit or loss in your currently owned commercial property or the one you intend to acquire. How you acquire it can be important....(more)

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How To Increase Market Value In Todays Market

Sat, 01 Jan 2022 23:57:39 -0500

This month's newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space. In this issue

Modernize An Older Building

When you want an increased return on an older property it may be time to modernize the property. When you look around a community, you will usually find a number of properties that need to be upgraded. Some existing owners do not recognize the increased return that they could get or do not want to make the necessary investment. Often these buildings can be acquired at a price that reflects the return based on the current condition and income. When you set out to modernize an older building, you will encounter three kinds of deterioration or obsolescence: The first of these, physical deterioration, starts immediately after the building is completed and continues throughout its entire life, unless it is handled along the way with proper maintenance and repair. This type of deterioration usually can be taken care of by routine repairs and replacement of parts. Anytime the acquisition of a run-down building is being considered, the investor must be certain that the deterioration has not become so bad that the building will have to be demolished.....(more)

Communication Between Management And Owner

For success in achieving the owner’s objectives, there must be open communication between the owner and the management company. The process must be continuing from the onset of the management plan based on the owner’s objectives to the dissemination of monthly and annual financial reports for the owner’s records.......(more)

The Need For Both Asset And Property Managers

When owners of large portfolios of investment properties need to make strategic business decisions involving management of these properties, they will usually call on asset managers. Areas of concern are overall leasing strategy involving rental rates and tenant concessions, in addition to repositioning or redevelopment, tenant mix, managing bulk service contracts.....(more)

Increasing Market Value

Investors purchase residential and commercial income producing real estate to make money. There are two obvious ways of making money from a property. First, the owner takes a share of the annual operating profit generated by the investment, and Second, profits from increasing the market value of the investment beyond what it would be because of inflation alone......(more)

Benefits Of Commercial Condos

When the word condominium is mentioned, do you always think of residential properties? Of course, most condominiums are ones that people live in. But, let’s consider the other condominiums. There are all kinds. Any type of rental real estate can be converted to a condo. There are a growing number of commercial condos, many of them professional offices. The benefits are the same as owning a free standing building used as an office. A leading benefit is the security of having an owned unit free from any problem of having to move at the end of a lease period. Like owning any commercial property, interest on loans, taxes and expenses can be deductible......(more)

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How To Avoid Costly Mistakes In Commercial Real Estate

Mon, 01 Nov 2021 18:24:00 -0500

This month's newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space. In this issue

Costly Mistakes In Real Estate

Investors sometime make investments in real estate that turn out badly. They may then blame the loss on the “real estate cycle” when there were mistakes that could have been avoided by better planning and analysis. Based on data obtained through interviews with more than 200 real estate practitioners, several costly mistakes were identified and discussed. Here are three of them: ...(more)

Be Ready With Emergency Plan

Building owners and managers need to be aware of their obligations to their tenants for emergencies that can happen in buildings. Emergencies like fires, power failures, bomb threats, crimes, civil disorders, wild weather are just a few that could happen. Be prepared! Emergencies happen when least expected, so office-building and apartment managers must be ready in advance and have a plan prepared. Here are some components of a plan of preparation for emergencies in buildings......(more)

How To Control Property For Maximum Gain

Some investors look for the short-term investment with less of an emphasis on “doing business” and more pre-investment research on controlling property for the maximum gain in the short term. These investors often use the option or purchase-option. Traditionally, most real estate investors have been attracted to commercial real estate opportunities. Typically these investors have been well rewarded for their investment. Properties that are designed for “doing business” proliferate and succeed as businesses grow and diversify and become more and more profitable. For investors to be successful it is normally important to understand the operation of the particular commercial enterprise involved in the real estate investment.......(more)

Why Warehouses Are Money Makers

When Syndicates, partnerships, investment companies and their individual participants look at investments in commercial properties, many tend to look at properties that have that bewitching charm of glamour in brochures. A beautiful office building or an enclosed shopping center seem to have a more acceptable “status” as an investment property. These buildings can be nice to drive by and point out as “our” investment. Originally, any property designated as a “warehouse” would always be located in areas zoned for industrial use. There is not nearly as much allure in a squat bulky warehouse building. The physical attractiveness is not there in color flyers and photographs. However, as money makers, these bulky buildings can be a very profitable real estate investment......(more)

Real Estate Investment Guidance

Which way is the right way in real estate investments in 2022? What is the future in these investments? An answer to these questions can be an interview with an interested professional real estate broker who can act as a real estate investment counselor. Each prospective investor can be interviewed in depth to find out specific needs in an income property. At the same time their needs are being evaluated, the broker will also communicate what benefits are available in various properties and how to identify them. Some considerations should be given to the risk of loss for each age bracket of investor. Should an older investor purchase a property with the smallest down payment and highest leverage position? This will limit cash flow and may cause the property to have a “negative” cash flow. Is this what they want – or do they want cash flow from the property?....(more)

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