Many are aware of the benefits of investing in real estate properties. From gaining financial freedom by having a high-income source and being able to expand your assets, investing in commercial real estate is almost always a great idea.
Finding the right property is never an easy task, though. Common variables to consider include the location of the property, the price based on the market and location, as well as the business opportunities that could potentially come about from this new investment.
When looking for a commercial real estate property, it can be a great idea to purchase one in a populous city. With the influx of people, there is a better chance of success, and the return on investment can often be higher. With the increase of activity in the US market post-pandemic, be sure to consider the exciting cities the market has to offer This business venture could be the start of something exciting and highly profitable!
Salt Lake City, Utah
Utah is a unique place to visit, with its mountainous scenery and multiple national parks that are bucket listers dream come true. Salt Lake City, Utah is home to a booming downtown. It’s crowded with both people and businesses of all types and can be a great city to consider when looking for the perfect investment property for your needs. Recognizing the value of collaboration in investment sales is an important aspect for the brokers at SVN ALTA. Based in downtown Salt Lake City, SVN ALTA brokers are experts in the market for commercial real estate investments.
Why Salt Lake City?
As the capital and most populated county in Utah, Salt Lake City has a diverse population. From its rich culture, a popular ski destination, and varying shops and Irish pubs and wine bars, it is easy to see why Salt Lake City is a common destination for weekend trips or for long term living. The opportunities that this city in the Beehive state has to offer are nearly limitless.
In terms of commercial real estate in the exciting city, it has great rates and a high success rate for investors.
What industries are popular in Salt Lake City?
Salt Lake City notably has a lot to offer, but Utah’s diverse economy can be narrowed down to more specific industries. When considering an investment property, popular industries include tourism, mining, agriculture, manufacturing, information technology, finance, and petroleum production. Having these options when looking for a commercial real estate property creates the opportunity for a successful investment.
The uniqueness of Utah can often relate back to its diverse culture and varying population in relation to other large and populous US cities. Salt Lake City is known for a high population of Mormons, which help to contribute to the rich culture of the city, as well as the economic success. The predominant Mormon culture often focuses on delayed gratification and stable families. This helps to contribute to the economic success of the city as a whole.
The people of SLC generally take education very seriously and have a high percentage of college graduates. This can be another contributing factor to the success of the city’s wealthy economic state that has been withheld over the years. Investing in an area of a wealthy population is definitely something to highly consider when looking for a location for a business venture. In comparison to smaller cities, commercial real estate investment properties would typically do better in a larger city.
Post-Pandemic Commercial Real Estate
As the pandemic nears an end or society’s return to the “new normal” some things have changed in the commercial real estate world. While location is still one of the number one factors to consider when closing the deal on a new property, the prices in the market have definitely shifted. As the pandemic led to people fleeing populated cities, the prices have decreased. Now can be a great time to buy because as vaccinations have increased and the Covid-19 crisis has declined, people are likely to return to the cities. Salt Lake City and its location and price positioning makes it an incredible place to buy in the current market. This price decrease makes it the perfect time to buy, and will increase as time passes, so getting in while they are low is important for the biggest return on your investment. With the increase of work from home for businesses, larger buildings are currently being used less. With the eventual shift back to the office, new commercial real estate will be needed.
Owning a restaurant is an exciting business opportunity and it can generate great income over the years. As easy as it sounds, purchasing a restaurant space is an important task and it should be done carefully. Additionally, there are some factors you should take into consideration when you want to buy a restaurant. Proper planning of a restaurant is crucial so you can save on costs and make more profit. So, in this blog post, we cover what to consider when purchasing a restaurant space.
The Size of the Space
The size of the restaurant is definitely a key characteristic to look at. The square footage you need from a space depends on the type of restaurant you plan on opening. There is a rule of thumb we call the 60/40 rule. When it comes to restaurant size, this rule can make your space much more comfortable. This rule states the dining section of the restaurant is meant to comprise or occupy most of the space in the restaurant. To be specific, about 60 percent of the space should be allocated to dining, while the remaining 40 percent can be shared between the kitchen, storage, and other parts of the restaurant.
An example of spacing like this would be a restaurant that has about 7000 square feet. In this situation, 60 percent of the space (4,200 square feet) would be allocated to dining while 40 percent of the space (2,800 square feet) would be allocated to other sections, such as the kitchen or storage rooms.
The Style of the Restaurant
The style of your restaurant will go a long way in determining whether or not your restaurant will be successful. Unfortunately, there are many cases where the restaurant owner overlooks this factor, and they have to shut down. While the style might not be the entire reason they shut down, it could certainly be a contributing factor. So, your space’s style should be in line with the cuisine that is served at your restaurant. When a person goes to eat at your restaurant, they should feel as though they stepped into a different country, a classic American restaurant, or something else that would be appropriate to the style of food being served.
A typical example of this is when you go to a Chinese restaurant to eat a meal. In a case like this, the restaurant should have a classic Chinese culture feel. The space shouldn’t feel like an American sports bar or a Mexican cantina. It should feel as though it matches the menu being served. This can be accomplished through architecture or decorations. The style of the space truly matters when purchasing a restaurant location. Don’t overlook this factor.
The Parking Options
The parking ratio of a restaurant is another important factor that should be considered when purchasing a restaurant space. The main objective of a parking lot is to give customers a space to leave their cars when they visit the restaurant. Ensuring they have space to park will encourage them to come inside. How many times have you had to leave a restaurant because there wasn’t enough parking for your car? This is why it’s so important to provide enough parking at your restaurant. A typical parking standard for restaurants includes the following:
- <2,500 square feet of building territory – one space for every 100 square feet of a building region
- >2,500 square feet of building territory – one space for every 75 square feet of a building region
- If you have a food truck or a walk-up restaurant where customers don’t stay, allow one space to every 275 square feet of the building.
Having ample parking will ensure more customers come inside and can park their cars comfortably.
The Cost of the Space
When looking for a building to purchase, you must save money where you can. Purchasing commercial buildings can be costly, so look for ways to cut costs to be more profitable. When looking for ways to get a great building for less money, you can consider:
- Locating your restaurant in the suburbs: This is certainly a good idea if you plan to minimize costs. In the suburbs, you can find less costly buildings available for purchase.
- Locating your restaurant in an older building that you can renovate: The idea of doing this is brilliant. It saves costs and other expenses that you would have been burdened with if you had to purchase it. Locating your restaurant in an older building will give you the leisure to purchase other things to make your restaurant look way better.
- Locating your restaurant in a low tax neighborhood: Doing this is cost-effective. When a restaurant is located in a low-tax neighborhood, it saves money because the taxes you pay will be much lower. This can save you thousands of dollars every year. So, find a low tax neighborhood or ask your broker to refine their search to these areas.
Purchasing a Restaurant Space
When purchasing a restaurant, it is advisable to do proper research about the place you want to use. You also need to look for ways to reduce costs. Reducing the cost of your restaurant does not mean your space should be of low quality. It should still look great and feel welcoming to your customers. It is important for you to always have your customers in mind so they are more likely to visit your restaurant often.
If you are ready to purchase a restaurant space in the Salt Lake City, Utah area, please contact us. Our team can help you find the perfect space for purchase!
Buying commercial property can be a bit challenging for those who haven’t already been through the process. In fact, it can be challenging even for a veteran commercial property owner. Luckily, once you have purchased your first commercial property, the process gets easier and you know what to expect. So, to help you with this process, we have put together some tips.
Tips for Buying Commercial Property
There are many considerations to look into before making the decision to buy a commercial real estate property. It is best to be as educated as possible on commercial real estate investing before starting the process. This will help you to make an informed decision that will lead to a successful purchase. So, read the tips below to be one step ahead.
Consider Your Budget
Your budget is one of the most important factors to consider when investing in commercial real estate. The amount you can spend on a property will dictate what properties are available to you. It will also impact the size and location of the property. So, think about how large your budget is before going into the search process. You don’t want to spend too much to where you are making a bad financial situation. On the other hand, you should purchase a property that is large enough and in good shape. Doing this will increase your chances of attracting future tenants.
Know What Type of Property to Look For
There are many different types of commercial real estate properties. From retail, to multifamily, to office space, you can purchase all different types of real estate. Many people already have their minds set on a type of property they would like to purchase. If you are unsure, look to your budget. Also,consider the costs of maintenance and repairs on each type of property, to ensure you can afford to keep it maintained. This will help you get a good idea of what makes the most sense for you and your specific needs.
Choose a Great Location
Location is very, very important in commercial real estate. You want to purchase a space that will get a lot of business for your tenants, and a space that is in an area you can afford. Different zip codes and counties cost more or less for properties, so that is something to keep in mind. Do some market research on the success of commercial real estate and businesses for certain areas. This will likely point you in the direction of a smart business decision. Also, consider whether you need to be in an area with heavy foot traffic, or if being off the beaten path is fine. Will you need road-side signage? These are all location related factors to talk to your commercial broker about.
Get in the Minds of Potential Tenants
If you plan on leasing out your property to tenants, it’s crucial that you put yourself in their shoes. When looking at properties, ask yourself, Would I want to lease this place? If the answer is no, you may want to keep looking. Your property should be professional and comfortable for tenants. They should walk in and see themselves running their business out of your property. Based on the type of property you want to buy, tenant expectations will be a little different. So, think back to when you were in a similar property and what you were impressed by. This will help you get tenants who love the way your property looks and feels.
Another great way to ensure tenants want to lease your space is by making some improvements. Painting the walls, adding new tiles on the floors, and putting up new blinds is a great way to attract people to your space. At the end of the day, if you wouldn’t want to welcome customers into the space, you should probably keep looking.
Hire a Commercial Broker
The best piece of advice you can receive when trying to purchase a commercial property is to hire a commercial real estate broker. In Salt Lake City, there are many different types of commercial real estate properties. If you’re only interested in general commercial real estate investing, it can be difficult to decide which type of property to purchase. Additionally, there are different areas of Salt Lake City that are better for certain commercial real estate properties. A broker will be able to give you advice on these two important factors. They will also help you make decisions based on your specific circumstances.
If you are looking to buy a commercial property and would like help from a broker, please feel free to contact us. We have experienced commercial real estate brokers in the Salt Lake City area who would love to help you. Your broker will help you find a property in a great location that you can afford.