Buying industrial real estate requires careful planning and assessing various factors to mitigate risks and maximize returns on your investment. The market is constantly evolving, and various complex factors impact price appreciation and the returns on industrial properties. As an industrial real estate buyer in Denver, it is important to understand the market clearly and avoid mistakes to ensure you can strike the best deal.
Not Assessing the Value of the Property Correctly
No two industrial properties are built equal, and they will vary based on location, zoning, layout, construction quality, and property history. Inability to evaluate these factors thoroughly and conduct a proper inspection of the property can result in long-term financial pain.
To avoid devastating costs resulting from an incorrect valuation or a missed red flag during a property inspection, one should consider hiring an industrial real estate agent in Denver. Due to their experience, these experts can help you obtain a complete property inspection and point hidden costs you might not have noticed otherwise, such as structural and cosmetic repairs, utility issues, and permits. Further, they can advise on leasing and resale potential.
Overlooking Due Diligence
Due diligence is the period of time between entering into a contract with a seller and taking ownership of the property. Often, investors are eager to close on a deal and fail to research the property thoroughly. Due diligence encompasses studying lease agreements, financial statements, ensuring the property meets all federal, state, and local guidelines. As such, due diligence is essential in understanding aspects of your investment that might otherwise not be apparent. These “hidden” facts can impact the financial value of an otherwise profitable deal. Therefore, hiring a professional to handle the due diligence process will help you avoid any unwanted surprises.
Going into the Purchase Process Alone
The most intelligent industrial investors know they do not know it all, and it is okay to admit you do not have all the answers. Consult with an industrial real estate agent in Denver who can guide you through the entire process and help make a wise decision. They have the knowledge and expertise to connect you with the right industrial property that meets your demands and budget.
