Any form of investment carries risks, which is why it's generally recommended to diversify your assets to avoid being in trouble if one investment fails.
Read on to learn more about investing in commercial real estate in Staten Island, NY, commercial properties for sale in Staten Island, how to mitigate investment risks, and how to make the most money from your investment.
Types of CRE available in Staten Island
Investors eyeing Staten Island for their next investment will find that the area offers a great mix of residential properties and CRE for retail and manufacturing. Among the commercial real estate for sale in Staten Island are mixed-use developments, small spaces that can house boutiques and restaurants, multi-story buildings, shopping malls, and spacious office buildings.
Some properties already have tenants, so you can start earning income right away. Staten Island is also an emerging industrial and manufacturing hub, with warehouses becoming part of the property mix.
But CRE isn't just intended to serve the needs of businesses. Residential properties are also considered CRE, and residential buildings for sale in Staten Island include luxury buildings made up of multiple condominiums or apartments, mixed-use homes with space for medical offices or offices, or buildings with residential units on the second floor and office and retail space on the ground floor.
The impact of CRE on local economies
The availability of CRE is always a benefit to any region: large businesses will be more willing to invest in a town that has all the necessary infrastructure and makes it easy to start a business there. Their presence also creates more jobs and pumps money back into the local economy.
In New York City alone, commercial real estate development contributes $27.1 billion to the state's economy, generates $10.2 billion in wages and salaries, and creates and supports 160,772 jobs, according to the National Association of Industrial & Office Realtors (NAIOP) Commercial Real Estate Development Association.
Offices and warehouses aren't the only CRE that benefits the area: available rental housing makes the location more attractive to new residents, which is especially necessary as Staten Island's population is projected to reach an all-time high, drawn by the city's quality of life and relatively low cost of living (especially compared to Manhattan).
Best practices for successful CRE investment
When investing in CRE, the general impression is that you just buy a building and get a quick profit. Like any other investment, you need to be smart about what you invest in and how you spend your money. At the same time, you need to look at current market trends to see if the timing is right to invest in CRE or if there is a change in people's preferences for CRE so that you can adapt accordingly.
Here are some strategies to apply to get the most out of your CRE investments.
Investing in places where people gather
You want to make sure your property is located near a large employment base so that you and your tenants can benefit from your business, and the CRE you choose should be in an accessible location to increase the likelihood that people will find it a convenient place to do business.
Observe the current economic situation
It's helpful to know what's happening not just at a national level, but at a local level. According to the National Association of Realtors, demand for both retail space and multifamily housing remains strong. Keep an eye on how other sectors are doing, such as office space, where demand continues to decline. Keep in mind that inflation and other factors are driving people away from CRE.
Become familiar with the local real estate market
If you are considering buying a building for sale in Staten Island, you should thoroughly research the permit data, property liens, building permit plans, etc. to avoid unpleasant surprises in the future. It is also a good idea to find out about the hidden costs that come with buying CRE. A local real estate professional can help you in this regard.
Focus on current details, not just predictions
If you’re considering buying commercial land in Staten Island, it’s okay to rely on projections since they tend to be speculative. However, if you’re buying an existing building, check the current rental and lease rates. This is a great way to get an idea of how much income you can expect to make against the purchase price plus any maintenance costs you may have to incur.
Invest locally
We mean it literally. After all, you need to keep a close eye on your properties. This is especially important for first-time CRE investors who are still finding their feet and want to see first-hand what property management is like. You can invest in CRE in another city or state, but then you'll need to hire a local property manager. But keep in mind that this can be an unexpected extra expense if you're a beginner, and that the property manager may not show the same care and dedication to your investment as you would.
Make sure you have enough funds
While you may already have the funds to purchase the property and pay the necessary city fees, you'll need to consider other costs, like maintenance and upkeep, so you'll need to set aside a budget for any renovations that may be needed.
These are just a few of the things you can do to get started on your CRE investment and ensure it’s a success.
Upgrades to consider to get better market rates
Besides sufficient funds available for all purposes, owning a CRE property requires a vision for the property’s image and reputation, as well as a proactive approach to maintaining profitability and attractiveness to tenants. Several upgrades, such as the following, can increase the value of your CRE property, improve its aesthetics, and increase rents.
Improved security
Investing in a keyless entry system, shatterproof glass in the windows, alarms and cameras will give your tenants and their guests peace of mind – and it will also improve your property's reputation if people know it's a safe place to visit.
Clean up your outdoor space
Outdoor areas are a big attraction nowadays and make your property feel more inviting. If you have the space, you can create a relaxing outdoor area around your property. If you don't have the space, you can choose to simply improve the landscaping, update the signage, and keep the parking lots and sidewalks around your property in good condition.
Add a modern touch
You don't need to retrofit the entire building – simple things like switching to energy-efficient lighting and providing Wi-Fi throughout the building will do.
Fix any repairs you need immediately
Cracks in the walls, burnt out light bulbs, and broken signs may be something you'd like to put off, but tenants and guests are sure to notice them and they will diminish the impression your property has of you. Fix the problem now, before it gets worse, and you can avoid more costly repairs in the future.
Update the building's exterior
Your property's exterior is the first thing your tenants and guests will see, so you want it to look good. It's hard to charge a consistent rent if your property doesn't have a particularly attractive exterior. A fresh coat of paint and new signage can go a long way.
Ensuring that your CRE is up to date can be a key deciding factor for prospective tenants looking for a modern space that is safe, convenient, and has all the amenities they need.
CRE Property Marketing and Advertising
You've revamped your CRE and are ready to process transactions. Now you need to make sure people know you welcome tenants. It's not enough to simply put up a sign that says “Space for Rent/Lease.” Today, you need to reach as many people as possible and make a positive impression on both your property and its location.
Establish your property's brand and identity
Some people recommend giving your building a name. It could simply be the street address, or it could be something related to your town. Basically, you're free to think of any name that distinguishes it from other buildings.
Building a website as a primary marketing tool
Include clear, well-lit photos of the exterior and the space to rent, and be sure to include details like size, nearby location, and amenities. Make sure your content is optimized for search engines, and provide regularly updated content so people looking for rental or lease property know that there is space available in your building.
Create video content to showcase your property
A well-made video should explain the space and the type of facilities it can accommodate. A 3D walkthrough of the space will give the client a clear idea of the available space and how it can be used.
Use social media to reach potential tenants
Post regularly, keep your contact information up to date, and respond promptly to inquiries. If you have various businesses based in your CRE, it's a good idea to post about them, their products and services, and promotions from time to time. This is free advertising for your tenants, and future tenants will feel reassured knowing that you're just as interested in their growth as they are.
Find the perfect commercial property in Staten Island
Smart CRE investors know that you can’t find the perfect investment property on your own – working with a professional who understands the market well and is in tune with your goals is always a good choice.
Casandra Properties Inc.'s New York City licensed real estate team has extensive experience working with aspiring commercial real estate investors. Top real estate agent Casandra Zappala has been in the industry since 1979 and has been leveraging her expertise in commercial real estate for sale in Staten Island for the past 44 years. As a woman-led company, Casandra Properties Inc. has completed over $1 billion in real estate transactions in the past decade. The company has worked with businesses such as Dunkin' Donuts, Walgreens, Telco, TD Bank, Commerce Bank, MetFood, Marathon Bank, Northfield, HSBC, Burger King, CVS Pharmacy, Capital One, Charlie Brown's, White Castle, Checkers, 7-Eleven, and many more.
Casandra Properties Inc. deals in residential and commercial real estate, apartment complexes, shopping plazas, industrial sites and vacant land.
Be part of our success story. Take your first step in investing in commercial real estate for sale in Staten Island. Call us at 718.720.0126 or contact us here.