Shopping Centers- Worthy Investment?

Is a Shopping Center a Worthy Investment?

Do you have extra money and want to invest in something that is worth your while? One type of investment you may want to focus on is how to maximize Texas properties. There are many types of real estate investments you can go for in Texas, but you may want to focus on investing in your own shopping center. Retail shops and shopping centers within Texas properties are a lot like Texas commercial real estate and industrial properties—they are not made for residency. However, shopping centers focus on multi-tenant rental set-ups where the spaces will be taken up by retail shops and not by offices. This is indeed an interesting investment to make but is it worth your while and your money?

Read below for some considerations to make when thinking of investing in a shopping hub:

• The biggest advantage in this type of investment in Texas properties is that it fulfills a general need within the community. However, for it to really take off, you will want to make sure that it is in an ideal area. By choosing an area that people actually go to, you make your shopping center more attractive to retail shop owners. You will also not have to worry too much about a high-vacancy factor.
• For people looking for investments that will give them a quick ROI, shopping centers are the way to go. As an investor, you need to make sure you strike while the iron is hot and take advantages of any opportunities that will come your way. It is a good idea to take note of established areas and determine the flow of traffic and the shopping trends so that you have an idea of what you can do in your own shopping center.
• One disadvantage in retail center investments is dealing with tenants. If you are new to the whole business, you may be tempted to fill in the spaces as soon as possible. This could lead to you agreeing to a lease of precious space to less-than-ideal tenants. Not only will these bad tenants give you a headache, but agreeing to the wrong kinds of tenants for your shopping center can also lead to a quick decrease of the quality in your shopping center. This would cause ideal tenants to leave.
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• If you are thinking of putting up your own shopping center, you have to be very picky as to the kinds of tenants that you agree to set up shops in your building. Make sure that you come up with a stringent screening process so that you maintain the quality of your shopping center.
• As a first time investor, it is not advisable to invest in a large shopping center right away. It is good to start with small buildings that have several spaces for retail stores. It is also a good idea to consider a strip-mall type of setting.

Investing in Texas properties to turn them into shopping centers is a good idea. Know your limitations and have a clear vision of what you want your shopping center to be. Finally, a stringent screening process for tenants should be considered.

If you or someone you know, is interested in investing in commercial real estate, feel free to contact me:

Allen J.-Texas Real Estate Broker www.TexasRealtyPros.com broker@texasrealtypros.com 832-305-7653

Can They Be Trusted?

How to Tell If a Potential Tenant Could Be Trusted or Not

Happy tenants come with proper management

Let’s assume that you already conducted basic screening for potential tenants in your apartment building and everyone has filled out forms. Potential tenants have also submitted their financial information, given landlord references, and proved they can pay for the rent. Everything looks good so far but before you agree to accept tenants, you might want to take a closer look at their applications. Sometimes you may miss signs of a bad tenant simply because everything else looks good on paper. It is very important for Texas apartment owners and even Texas commercial real estate owners to not be blinded by the need to lease a space for money because one bad tenant can seriously ruin an opportunity for landlords to make money. They are also bad for general well-being. You need to dig deeper and find out if they have bad-tenant tendencies.

“Why do I need to fill up an application?” If this is the first thing a prospective tenant tells you when you hand over the application, this person is most likely someone who is close to you or just someone who does not like the paperwork. It is a bad idea to start the rental process by playing favorites and paying lip service to those who will not follow even your basic rules. Be wary of applicants who feel that they are above your basic rules; they will try to flout other rules and you will have a big problem. If you have any prospective tenants who whine about the application form, just say “It is my building and I say every applicant needs to fill up a form.”

• “My father (or any other relative) said that I had no need to go through the regular process.” You might wonder why someone will even tell you this especially if you do not know who the person is. There are many reasons why an applicant will say this and one of them is because they have something to hide or are looking for preferential treatment.  Again, it is good for everyone to know right off the bat that you have basic rules and you expect those rules to be followed. If you begin your tenancies by breaking some rules, you may have a hard time enforcing some rules later on. Besides, skipping the application form is simply the worst thing you can do since you may well miss out on crucial information about your tenants.

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  Who am I really renting to?

  “I used to live with my girlfriend, and I paid her the monthly rent.” While it is good that he paid the rent, this shows that his name was not on the lease. It isn't exactly a crime but you need to dig deeper and ask: “Did the apartment owner know he lived there?” “Why is he looking to rent in your place?” “Has he ever rented his own apartment?” “Does he have a restraining order filed by the girlfriend?” “Where did he get money to pay his share of the rent?”

It might seem like you are digging too deep into your prospective tenants’ lives, but you have every right to. You will be entrusting your investment and property to them so you might as well make sure they are good people.

If you or someone you know, is interested in investing in commercial real estate, feel free to contact me:

Allen J.-Texas Real Estate Broker www.TexasRealtyPros.com broker@texasrealtypros.com 832-305-7653

How Essential are Warehouses?

How Essential is a 

Warehouse for Local Businesses?

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When you put up a business, it is very important 

that you think of every little detail. Not only do you have to think about your sales and your employees, but you also need to think of your stocks and where you put them. Now, some stores may be okay with their stock rooms but what about warehouses? Do you really need to suffer the stifling confines of a stockroom when you can always rent a warehouse? Just how essential is warehouse rental to a local business? Read below to answer these questions.

Problems with space – Local businesses will always have to contend with space issues, most especially with lack of space. But does this really merit the renting of warehouse spaces? If you are a local business owner and you are thinking of getting a bigger space, then you have to look at things from a business perspective. According to Texas commercial real estate investors who own residential, commercial and shopping spaces, it all really depends on your needs. 

Big stores with lots of wares – If you own a big local business and often have massive amounts of stock coming, you need a warehouse since your stock room may not have enough space. There are so many owners of Texas properties that have warehouse spaces you can rent and they can be as little or as big as you need.  

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  Holiday rush – You know how during the holidays, people tend to spend more and stores need to increase their stocks? If you have several stores and you need to make sure that you have stocks for the holiday season then it is a good idea to rent warehouse space for the season. When you rent a warehouse, make sure you get a lease that fits the holiday time frame because you do not want to be paying for warehouse space that you will not use for several months a year.
• Store expansion – For small business owners planning to open more stores, more warehouse spaces are necessary where they can store their stocks until the stores are open. Owners of Texas properties state that you cannot wait until the last minute to stock up. These are times when warehouses come in handy.  
• Enough space in storage rooms – Local businesses that might not need warehouse space are the ones that do not usually stock up on lots of merchandise. They can easily handle excess stock in their storage rooms. Examples of such stores include small clothing shops that can easily keep their stocks in the back room. It will not be a good idea to rent a warehouse when you do not need all that space.

As you can see, renting warehouse space is indeed essential but only for some types of local businesses. Owners of Texas properties have lots of warehouse types for business owners to choose from. Why, there are even some climate-controlled ones for plants or other delicate items that do not yet have spaces in stores. Food stores can also consider refrigerated warehouses for their storage needs.

If you or someone you know, is interested in investing in commercial real estate, feel free to contact me:

Allen J.-Texas Real Estate Broker www.TexasRealtyPros.com broker@texasrealtypros.com 832-305-7653

The Importance in having Your Own Building

What is the Importance of Having Your Own Building?

If you have some extra cash and you want to make a worthy investment, you should think about investing in your own apartment building. Just like Texas commercial real estate owners, you can get businesses and corporations to rent from you. This way you can make money from them to sustain your lifestyle in your retirement years. You can even make it your primary source of income and not have to work. It might seem daunting especially for someone who doesn't have much experience owning and managing Texas properties but the benefits are obvious and you really can’t overlook the idea. Read below for some of the benefits.

• You control your own cash flow. You can always invest your money on passive investments like bonds and market stocks instead of Texas properties, but when you own your own apartment building, you are top gun. If there is a need for more money and your local market allows for it, you can raise rental fees. This could adversely affect your clients though, so tread lightly when it comes to raising rent. If you are scared that you do not know enough about managing an office building, you can ask a real estate management company that is qualified and licensed to take over the management of the apartment while you learn the ropes.

• All the units are in one place. Managing an office building is easier (and cheaper) since all the units are all under one roof in one place. This means you can check on each and every office space you own on a regular basis and you do not need to drive to different places.
• You do not need to have bundles of cash to invest. If you want to invest in Texas properties for office spaces, you can get seller financing. By doing this, you can buy a building and not have to go through the long and arduous process of applying for a loan.
• You can look forward to forced appreciation. Did you know that office buildings are valued in accordance to their net operating income? What this means is a hard-working and forward-thinking owner can influence the value of the building by reducing or cutting back on different maintenance expenses. You may also increase value for these Texas properties by working on strategic improvements on the building.
• You can make money. If you want to quit your job but still make money, then this is the way to do it. The income you will receive from a well-managed office building will be quite significant and stable since most tenants choose to sign up for year-long leases and that means your income for a year is secured.

So you see investing in a building of your very own does have a lot of benefits. It does seem risky and daunting at first but it can be done with just some effort and hard work on your part. It will be very rewarding and you can be assured of a stable income; as long as you take the necessary steps to ensure that you have the best policies, the best tenants, and the best business strategy.

If you or someone you know, is interested in investing in commercial real estate, feel free to contact me:

Allen J.-Texas Real Estate Broker www.TexasRealtyPros.com broker@texasrealtypros.com 832-305-7653

Consider This.....Shopping Centers

Shopping Centers:Things to Consider before Investing
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Owning a Texas commercial real estate such as a shopping center can really turn out to be a good investment if upon evaluation of the property, it meets a few basic qualities for success. Not all Texas properties are equal when it comes to these factors. Investing on one that meets most if not all of the suggestions below are much better than just randomly buying a shopping mall simply because you can.

Factors to Consider when Evaluating Texas Commercial Real Estate ________________________________________

One of the most common kinds of commercial real estate is the shopping center. Next to apartments, shopping centers are a fad among some owners of Texas properties because malls are where the money is.

• Location – Check where the existing property is located and evaluate its appreciation value—or its increasing value over time. Is there much potential for growth in the area? Is the place currently surrounded by neighborhoods, or is it near a developing community? See whether it is accessible to a lot of people and if it can maintain its profitability over the years by being in a busy place in the neighborhood.
• Building condition – When was the building made? How is its current condition? These are two main questions when it comes to evaluating the condition of Texas properties. You may need the advice of an engineer when it comes to checking the condition of the building to see if everything is still stable and won’t fall out. If the building is an old one, having the expert opinion of an engineer to assess the building will pay off. You may also get price negotiation tips when buying the property if it is not currently in a very desirable state.
• Renovations – If you plan on purchasing Texas properties which come at cheaper prices, you have to know why. Usually, this is because the building is no longer in a good condition; it may even be far from it, hence the cheaper price. If you have a lot of renovations to do, consider how much it would probably cost plus the amount of the property and see whether the building would be worth your money and effort.
• Budget and partnership – Shopping centers are not small purchases. These places are usually big and come with hefty price tags. As a sole investor, you would need a lot of money to set things in motion when buying a commercial property. Consider the above factors and determine how far your money can take you. If it’s too much, you may want to look for partners when it comes to your shopping center investment. This helps take a certain amount off of your shoulders while still having your business plans in motion.

Don’t jump into investments simply because you have the funds. Successful business owners take time to think things through and are mindful of such considerations to help ensure their investments do not go to waste. Spend some time to check these factors and then make your decision to invest or not to invest!

If you or someone you know, is interested in investing in commercial real estate, feel free to contact me:

Allen J.-Texas Real Estate Broker www.TexasRealtyPros.com broker@texasrealtypros.com 832-305-7653

Tips for Choosing the Right Location

4 Tips in Choosing a Location for Your Shopping Center

Shopping centers may be a huge investment, but the return is undoubtedly high. As long as you have the perfect pick out of the number of Texas commercial real estate lineups available, the possibilities are endless. Here are a few tips on what you should consider when looking at Texas properties that you can utilize to build a shopping center:

• Check the demographics. How are you envisioning your shopping center? Will it be filled with high-end shops and restaurants? Or will it be for the medium classes? Make sure you position yourself within or near a community that matches your target market. With the number of Texas properties available, there will definitely be available space that could cater to your needs.

• Check the competition. How many shopping centers are within the area? What market are they targeting? You have a few options when it comes to taking your share of the market from the competition. You can either go head to head with them and match whatever they have, banking on effective marketing to outsmart them. You can also check on what they do not offer and use that as an entry point. Your strategy would mostly depend on the kind of location that you have and the buying capacity of those around the area. Remember that shopping centers are great because they often offer everything that a shopper needs without having to move from one location to another. However, setting up near tight-knit communities could also mean there will be outside competition from smaller stores that consumers already trust through years of business transactions.

• Check your visibility. Would you like to be visible to the passing public? Are you confident enough that you can still draw crowds even if you choose Texas properties that are farther back from main roads? Again, this decision would depend on the kind of neighborhood you set up your shopping center in. If you decide to go farther back and risk visibility, make sure that you offer everything that a potential shopper needs so that it would still be convenient for them to go out of their way and visit your shopping center instead of opting for the stores along the major boulevards.

• Check the size. Of course, one of the most important factors you should look at in choosing among different Texas properties is the size. How big would you like your shopping center to be? Consider the parking space as well. Are you planning on covering a big area for parking? Make sure that you would be able to fit all your plans into the space that you are looking at. Although flexibility is good for business, this is one case when it would be better if your shopping center turns out the way you envisioned it initially, and size will be a big factor.

Start checking out available Texas commercial real estate and see how far building a shopping center will take you. With the great mix of consumers all over the area, you will definitely see that it is all worth the investment in the end.

If you or someone you know, is interested in investing in commercial real estate, feel free to contact me:

Allen J.-Texas Real Estate Broker www.TexasRealtyPros.com broker@texasrealtypros.com 832-305-7653

Sprucing Up the Place

How to Spruce Up Your Shopping Center

If you own Texas commercial real estate, finding ways to keep it the “hot place in Texas” so that it will bring more customers in is a must. To maximize the earning potential of your Texas properties, exerting effort on attracting more people is something you should do—especially if you own a shopping center.

Sprucing Up Your Texas Commercial Real Estate

Think from the customer’s point of view—what would most likely catch your attention to make you explore a shopping center? Here are some helpful ideas to bring more positive attention to your Texas properties:

• Have attractions on your facade. What really catches attention is having a small kid’s playground or a beautiful park-like sitting area. Something new like this would definitely catch the attention of passer-bys. By having a small playground, you attract kids who almost always have a parent accompanying them. Benches and spacious sitting areas would also attract other potential customers to enjoy your space and venture into your shopping center.
• Beautify your walkways – Your Texas properties would benefit from covered walkways with that contemporary feel. You would do well to accentuate the building even with just sleek covered walkways! By having new improvements such as this in your commercial real estate, you are showing that you consistently maintain your building and people will be more curious to see what other new things you have in store for them.
• Use some fresh paint. Your exteriors say a lot about you. If you have changes you want to shout out to the world, you can say so by having a new look! Make sure you stick to colors that are relevant to the business to help people associate them with your mall or shopping center. Keep it simple, but make an effort to have a noticeable finished look.
• If you could expand, do so. Nothing speaks louder when it comes to improving your shopping center than by having an expansion. It may be expanding just a small area or having a new structure joined to the main building of the mall. This is where you can put stalls or other smaller attractions that you would like people to see when they visit you.

Pointers to Remember When Improving Your Texas Properties

When aiming for improvement, remember that your budget must not suffer while doing so. You ought to carefully think about these things:

• Budget – How much are you willing to spend to improve the current look of your shopping center? If you can go for the minor yet noticeable changes first, do these instead of the major ones which you might not have enough for. Starting with the small changes first will harm the business.
• Time to finish – How long would it take to finish your renovations and improvements? Have a good plan when it comes to finishing your renovations and strive to meet your target time of completion.
• How it would affect daily operations – As much as possible, working as efficiently as you can is a must since some renovations get in the way of using some parts of the mall. If you can have the renovations finished sooner than expected, they won’t affect how customers feel when they shop in your malls.

Your shopping mall would benefit from some changes, but take note of other considerations, too!

If you or someone you know, is interested in investing in commercial real estate, feel free to contact me:

Allen J.-Texas Real Estate Broker www.TexasRealtyPros.com broker@texasrealtypros.com 832-305-7653