Maximizing ROI on Your Tampa Commercial Property Investment

It’s unlikely that you can’t profit in Tampa by investing in commercial property. However,  maximizing ROI on your Tampa commercial property investment requires more planning!

Invest mainly in office space

The first way of maximizing ROI on your Tampa commercial property investment is to focus mainly on office space. That is simple: Tampa is extremely popular for startups, especially tech startups. Not all businesses need warehouses or additional storage space near their office. But every business, at the very minimum, needs a proper office address. That is still a staunch requirement, even if most of their employees work remotely. And with how many profitable startups there are in Tampa, it is unlikely that the city’s popularity as a place to start a business will wane soon. All this means that you are extremely unlikely that your office space will languish due to a lack of tenants. People snatch up offices quickly, even in less popular areas! And if you get one in a prime location, you are set.

 

Know what sort of improvements your tenants want to see

It’s important to remember the type of business you are renting to know what sort of improvements and conveniences your tenants want on the property you are renting. Using our previous example of tech startups, since they are most numerous, they will likely want an open space office that lets them squeeze in as many desks as possible or an office filled with cubicles. Then, they’ll also likely want a server room with decent climate control set up to counter the heat that servers tend to produce. Finally, they’ll probably not appreciate shelving or space for paper file storage, so you should not invest much into those. Even if you don’t put in the effort to do these renovations, you can turn a profit. However, they are fantastic for maximizing ROI on your Tampa commercial property investment with tech startups as targets.

 

Do not just focus on the current demand in Tampa

We mentioned already that even office space in ‘unpopular’ areas of Tampa is quickly rented. However, such properties in more remote or newly established areas are cheaper. That makes them a decent investment since you can start with fewer funds. But it’s also smart to remember that Tampa is a quickly growing city. Just because the area is considered remote and less appealing now does not mean this will be the case in the future. If you can be one of the first few investors in a new development, you stand a chance to profit once the area takes off. It may take a while, but you can still find tenants. Finally, as the storage experts from Here & Now Movers note, it’s easier to set up offsite storage in less popular areas to add appeal to the office space.

Look for long-term tenants

It may sound like an odd bit of advice, but if you want to maximize the returns on your investment, it’s better to look for long-term tenants. Long-term tenants care about the property nearly as much as you do. They do need to continue using it for years to come, after all. That type of care results in much fewer repairs and renovations required. On the other hand, it is not unusual for short-term tenants to leave a property in much worse condition than they found. That would necessitate many repairs before you can find a new tenant and seriously cuts into your profits. It can take some time to find reliable long-term tenants, but it’s not too hard if you leverage a decent realtor and take advantage of modern conveniences such as virtual tours of your property.

Do not be afraid to diversify your commercial property investment

Just because office space is Tampa’s most popular commercial property does not mean you shouldn’t invest in anything else. The popularity of office space means that most investors do that. And it opens up opportunities for you to snatch up other types of commercial properties for cheaper prices. The popularity of office space also means businesses have more difficulty getting other facilities. So, depending on their area, you may be able to charge more than the average rent. And even if you eventually get tired of managing different types of properties, you can always follow the example of people selling their businesses and selling everything other than offices. If you’ve done even minimal renovations and improvements to them, you’ll likely profit from the sale!

 

Cooperate closely with your tenants

The final way of maximizing ROI on your Tampa commercial property investment is to cooperate with your tenants. In other words, simply ask whether there are any issues with the property or if there are any improvements they would like to see. Of course, you should also clarify that certain remodels or renovations would impact rent prices. You can’t be expected to provide furniture or remodels without getting something in return! That does somewhat hinge on finding long-term tenants, however. They are the ones who would be interested in communicating with you and would stand to benefit from significant improvement to the property. As a bonus, your property is improved and more appealing to future renters even if they eventually move out.

Working to maximize your ROI in investment in Tampa

Now that you’ve reviewed our guide to maximizing ROI on your Tampa commercial property investment, you know what to do! Note that most of our advice takes a bit of time to put into practice. As such, it will take work and maybe even additional funds. But you will eventually be better off and capable of making even greater profits!

 

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