Written by: Curtis Fisher

 

Maybe you’re a real estate agent with bigger aspirations. Maybe you have a piece of land in an up-and-coming city. Whatever the reason, the idea of becoming a commercial real estate developer is appealing. Today, CH Construction dives into a few things you should know about the industry.

Getting a Real Estate License

Before you can become a real estate developer, it makes sense to first try your hand as a real estate agent if you haven’t already. According to Real Estate Express, the steps here include completing your prelicense education, passing the exam, and finding a broker that will give a newbie a chance. As a real estate agent, you can work on the residential or the commercial, this will give you valuable insight into what buyers are looking for.

Cost to Build a Commercial Space

Building commercial real estate isn’t cheap. For a small office building with one story, you can expect up to around $286 per square foot. This does not include any additional cost that you’ll incur because of pricing material hikes, slowdowns, or finishing out your space. Of course, there are ways to save, and, depending on where you live and local zoning regulations, you may even be able to begin your commercial real estate development career with something as simple as a 40’ x 40’ steel building. You might, for example, build this and lease it out as a warehouse space.

Safety Considerations You Can’t Overlook

It’s worth noting that the most successful commercial real estate endeavors are the ones that feature the safest buildings. There are many things that you should pay attention to here, including lighting and fire safety. If you have a parking garage, for example, high-efficiency LED canopy lights will ensure that both drivers and pedestrians alike can see where they are going. Further, a well-lit garage may deter some criminal activities. Your building should also be fully equipped with fire alarms, emergency exit signs, fire extinguishers, and a commercial fire sprinkler system.

Marketing Is Essential

Marketing is important in all businesses, and real estate developments are no different. Make sure that you take the time to create compelling marketing materials, which should begin with a logo. To get an idea of the type of branding you’d like to have, use an online logo maker. You can pick from a vast library of icons and styles, and you can change your text, colors, and other elements to get something that appeals to you. Free Logo Services explains that your logo should convey the essence of your brand, showcase your business name, and feature the right color scheme.

Types of Partnership You Need

As a real estate developer, you’ll make relationships with people in dozens of different professions. But, a few to start off with include someone to assist with financing, a construction expert, an architect, an attorney, and individuals well-versed in HVAC, electrical, and plumbing infrastructure.

Managing Your Investment

Let’s fast-forward. You’ve done your time as a real estate agent, you’ve got your money together, and you’ve filled your first commercial property. Now it’s time to decide whether you will manage it on your own or outsource. Chances are, your best bet is to outsource to a commercial property management firm. They will handle day-to-day operations, including rent collection and placing tenants. They also have a list of vendors that they know will show up when they’re needed.

This is in no way a comprehensive list of things you must know to become a successful real estate developer. But, understanding licensing requirements, building lighting and fire safety, marketing, and costs may help you decide if this is the right career path for you.

 

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