Diversifying Commercial Market Ruling Pune Real Estate

Pune real estate market is rapidly growing following the Indian real estate trend. The real estate activities are happening at extensive rate in commercial sector of the city. Pune commercial real-estate is developing at a breakneck speed. Retail outlets and malls are mushrooming everywhere to meet the rapid retail boom and the increasing purchase power parity of the middle class. With multiplexes and malls and retail outlets being the popular category, the values of commercial properties in Pune have shot through the roof. Pune developers are increasingly constructing commercial property to meet specific themes in mind.

For instance road-facing commercial complexes with large open area and floor area to accommodate number of commercial ventures is the latest trend in Pune. These real estate buildings are occupied by automobile showrooms as well as theme restaurants. The CBD areas of the city such as Deccan, MG Road are seeing a transition as old real estate buildings are being sold to the commercial owners and for constructing high-rise commercial projects. Large floor plates make these projects flexible in nature to house different commercial organizations.

Pune commercial real estate values are increasing and the current value at Central Business District is approximately Rs 4,000-6,000 per sq ft. Pune Real Estate Builders have started building residential complexes adjoining commercial building to provide an integrated solution to both residential as well as commercial patrons.

Commercial real estate activities in the city are covering the areas such as Bund Garden Road, Dhole Patil Road, Station Road and RTO and has given way to multiple emerging micro-markets like Kalyani Nagar, Senapati Bapat Road, Mundhwa, Aundh, Baner and Yerwada. Even the peripheral locations such as Hinjewadi and Wakad in the west and Nagar Road, Hadapsar Road, Kharadi and Sholapur Road in the east, offer real estate buildings for new offices and expansion plans, thereby making Pune a diverse growth market.

Commercial Real Estate Agents – Why Property Owners Should Hire Them

Industrial or commercial property owners considering leasing or selling their property might be asking themselves about the benefits of hiring a real estate agent. Below are a few key points to mull over:

Presentation – The agent can be the one who goes out to the property before tours to make sure the building and grounds show well. If the landscaping needs attention or if someone has abandoned a car in front of the building, a real estate agent can handle those calls for you. They can alert the building manager or you to any minor repairs that could make a big impact during a property showing such as a broken light fixture. Most agents know what potential tenants/buyers notice when a property is viewed. They can give you advice about getting the carpet cleaned, adding some lighting or a fresh coat of paint. Small modifications can be the difference between getting the space leased and letting it sit vacant for another 6 months.

Paperwork – No one likes to do paperwork, but it’s a necessary evil when it comes to real estate. An agent has access to standardized forms for all types of transactions. In Northern California, industrial real estate agents use forms from the American Industrial Real Estate Association (WinAIR Forms). While a real estate agent will be happy to go over the business points with you (length of lease term, current market rents/sale prices, tenant improvements, etc.), any questions about legal clauses should be directed to your lawyer.

Knowledge – Real estate agents read business journals, white papers, and industry articles to keep in touch with the current market trends in their areas of focus. When you hire a commercial real estate agent, they pass this knowledge along to you without your having to do the homework.

Relationships – Commercial real estate agents maintain relationships with various leaders and officials (such as economic development and planning departments) in the cities/counties of their areas of focus. Some companies do not work with local agents, but do contact various city/county officials when they are ready to explore opening new facilities in the area. Relationships such as these help real estate agents to get in front of many deals before they are brought to the market.

Marketing – Everyone has seen those signs planted in front of properties available for lease or sale, but there is much more to real estate marketing than just a sign. A successful agent will have a marketing plan that includes creating a flyer, sending out post cards to area businesses, and email blasting the local brokerage community. Real estate agents also have access to multiple listing services. Aside from cold calling, these are the true life blood of the real estate business. Searches are run on a daily basis. A good real estate agent will make sure your property is fully listed to get the best returns. When you are ready to hire an agent, don’t be afraid to ask to see a marketing plan.

Profit From Commercial Real Estate Investments

Property investors have now turned their attention towards the lucrative deals presented by the commercial properties. This sudden interest is the result of the option to diversify your property investment portfolio, along with a high income and tax breaks. However, it is advisable to conduct a research before taking the plunge.

Commercial properties include hotels, malls, medical centers, retail stores, business and industrial property. These are operated for a profit from rental income or capital gain. Some common commercial property types are:

– Apartments and multi family units: These are the first choice of investors. Apartment financing and management is very similar to that of residential properties.

– Mobile home parks: These can be a profitable investment option especially if you own the land and sell the mobile homes.

– Retail properties: More than one tenant occupies the premises and it is utilized for retail transactions.

– Offices: This category includes suburban garden offices, suburban high-rise offices, medical offices and central business district offices.

– Mixed use properties: These properties are a combination of all the above property types.

– Health care units: They include assisted living centers and congregate care centers and nursing homes.

– Hotels: The properties are categorized as either limited service or full service.

– Industrial premises: These properties can be used solely for industrial purposes.

– Self-storage units: The consumers use them for personal storage or for lease.

– Other specialties: These include oil change facilities and gas stations.

According to a reputed New York based real estate research firm, the price of apartment complexes rose by 26%, retail properties by 14%, industrial properties by 21% and office buildings by 6%, in 2004. Commercial property investment is very profitable but it is a complex business, as compared to investment in residential properties. There are number of factors that affect the property evaluation of commercial premises. It pays to study the market and tread cautiously.

Boom in commercial real estate property:

Commercial real estate includes, but is not limited to, properties used for educational, medical, commercial or industrial purpose. The properties are usable in business or trade and can be sold or bought in the real estate market. The improvement in the economy and growth in business ventures are responsible for the revival of commercial real estate. Another important reason has been the continuous flow of new investment capital. This capital is sourced from people who seek higher returns from large investments. The areas that come under the category of ‘commercially profitable’ carry a higher evaluation, as compared to other properties in developing areas. The rates for commercial real estate properties are calculated differently from the method adopted for residential properties.

The rental yields are better for commercial properties and the monthly cash flow is more than that of residential property investment, in the same area. The quoted expectation of returns depends on the kind of business that would be transacted on the premises. The profit from commercial real estate investments is definitely much higher than profit generated from investments in residential properties. Investment in commercial real estate is as lucrative as investments in stocks and bonds.