There are many opportunities in New York City for real estate investors, especially in the commercial real estate market. The amount of profit that a successful project can result in is astronomical but there is also a large amount of associated risk inherent in this kind of project. There are different problems that will need to be averted to stay within budget to give a great return on your investment. Here are some things to keep in mind while developing a strategy for a new commercial real estate building in NYC.
You are going to need working capitol for a project of this scale due to the high cost involved. If you are investing your own money then you don’t really need to worry about this but there are available lenders if you need extra cash. You should speak with your construction company because they might have a deal set up with a certain financier or visa verse. You will want to make sure that the closing costs are kept low or you will find yourself in a world of debt before a drawing has even been created. You will also want to make sure that the lender has a good track record and does not get nervous when projects get difficult so find one that has already provided financing for a commercial building.
A construction company will make all of the difference and you will be more than likely getting bids from different general contractors. These companies will manage all of the different components involved in the new building such as electrical, plumbing, steel, HVAC and everything else required. You should spend a significant amount of time researching into the credibility and reliability of the company as there are many horror stories associated with running out of funds and the project simply coming to a halt with the company nowhere to be found. Talk with local owners who know all of the inside information about the owners of the company to make sure that they are legitimate and don’t add any risk to the success of your investment.
Working with a professional real estate agent and appraisal team will also help establish realistic values for rent and more. Once the drawings have been complete these professionals can make an analysis of the market compared to your available space and provide accurate estimates as to the total income of the building. If there is enough profit projected in the calculations then you can continue with the current design but there is no point in creating something that will not net enough money for investors to come on board.
Half of the battle will be financing and constructions while the other half will be receiving all of the necessary permits to do exactly what you have designed. It is advised to work with an experienced permit expediting company in NYC such as GC Expeditors who has helped many companies complete their projects smoothly. There is nothing worse than everything being on track and receiving a huge fine or an order to stop building due to incorrect permitting.
If you are interested in investing in commercial real estate than NYC is a great place but you must assemble all of the correct pieces before moving forwards. This will ensure that your profitability will be maximized and risk minimized.