7 Common Mistakes Commercial Property Investors Make

It might be tempting to buy a commercial space for rent in Cavite because of the greener pastures on the side of the real estate fence. It is not only in Cavite as the entire country enjoys the 6.9% GDP growth it has achieved in the first quarter of 2016. According to Trading Economics’ report, real estate, renting and business activities have an overall share of 11% of total GDP. The future is bright in real estate but if you don’t play your cards right, you could suffer from costly mistakes.

Don’t get into the hype just yet and buy a for rent commercial space in Cavite; there are so much property investment mistakes you must first learn about so you can avoid them:

Your property is not in the right zoning

What is zoning? It is a “legislative process that divides privately-owned urban areas into different zones (such as residential, commercial, industrial) according to the specified land use,” as defined by the BusinessDictionary.com. For this instance, it should fall into commercial zoning. Check this one first because choosing an incorrectly zoned property may prohibit expansion or growth of your business and make you possibly end up with court drama. Study first the zoning ordinance in Cavite before you search for a for-rent commercial space.

Be a know-it-all buyer

Whether you’re a first-time rookie or a veteran in real estate investment, you should update yourself on the latest trends and regulations regarding your industry. As the Landlord Protection Agency puts it, “the more knowledge of investing techniques, financing, acquisition, negotiating and, of course, your local marketplace, the less risky your investments will be.”

No cash reserves

According to Investopedia, it “refers to the money a company or individual keeps on hand to meet its short-term and emergency funding needs.” In other words, it is money reserved for the ‘rainy days’ of your business. You can use this in case an immediate repair is needed, for example.

Not asking for help

In the same vein that you can’t know-it-all, you can’t do it all as well. Not unless you’re a multi-talented person and not just a mere jack-of-all-trades guy, then maybe you can be an accountant, lawyer, commercial broker and mortgage broker all at the same time. Form a dream team that will help you purchase an investment-worthy property. Don’t go it alone.

Ignoring the fact a property is subject to deterioration

You should plan for the future and this includes the upkeep of the property. Things like gutter cleaning, painting jobs and replacing doorknobs or lighting fixtures should be considered. The commercial space for rent in Cavite you’ve bought will never retain its tip-top condition for a lifetime. Better be prepared for repair and maintenance of the property because this is exactly where cash reserves will come in handy.

Buy a property first then plan later

This is a backward kind of thinking. What if the for rent commercial space in Cavite you’ve acquired is not fit for the type of business you’ve chosen? Or worse, the convenience store you’re planning to put up is not going to work out because there is one in every two blocks. Plan ahead and find a property that would work well with your plan. 

You can become rich overnight

This cannot be any more untrue. According to InvestPlus Properties, “the people who have made money in real estate have done so by keeping the property in their portfolio for ten or twenty years… You have to become educated about real estate, and you have to have the patience to hold onto it for a period of time.” So, don’t be duped by real estate “gurus” who feed you lies about real estate being the fastest big buck you can make. It is still all about hard work and it still will take time.

The weather in real estate is not always fair. Any experienced investor is aware of this and that is why they’re ready in case problems storm surge in. You might, unfortunately, bump into one or two of these real estate investment mistakes but as long as you’re well-equipped with proper knowledge and always practice due diligence in every transaction you come across, you will surely ace this business endeavor.

Designing Office Spaces with the Occupants’ Well-Being in Mind

Acquiring for sale commercial lot and space in Cavite (or in any other place you prefer better) is one of the steps towards establishing your own business. It is a tangible proof of realizing your dream as an entrepreneur. This is where you will conduct business. It is a place where you meet and transact with your future clients. This will be the ‘second home’ of your employees.

Have you already imagined how your office would look like? Will it be a typical office space with standard desks, swivel chairs, and white-painted walls that scream ‘corporate’? Or are you going to break that norm? If you chose the latter option, you have just followed the footsteps of Google, Facebook, YouTube and Corus Entertainment among others.

As an employer, it is up to you how you’re going to transform the commercial lot a space in Cavite you’ve bought for sale. You may leave it to the experts but your input is needed as well. How will you project the image of your company through the interior and exterior design and layout of your building?

First and foremost, you must keep in mind “that the design of an office has a material impact on the health, wellbeing and productivity of its occupants” as stated in the paper entitled “Health, Wellbeing & Productivity in Offices” published by World Green Building Council (World GBC). Employees spend 90,000 hours at work in their lifetimes. This is the same number of how long you’re going to be confined in your workspace while seeing the same design and layout all throughout your working life.

World GBC enumerate the factors an employer should consider regarding this matter as follows:

Indoor Air Quality and Thermal Comfort

We cannot see it but it is an invisible force that may affect the health of its occupants. Do you want to stay inside a humid room with strong/unpleasant odour for eight hours? Install proper ventilation to maintain good indoor air quality in the building.


Daylighting and Lighting

Ensure each room is well-lit and has windows to have access to day light. Flicking lighting or dim room with only the glare from the laptop as a source of light can cause eyestrain, headache or stress. In the case of daylighting, it reduces energy costs, improves concentration at the task at hand and maintains occupant’s circadian rhythm, according to the Guardian.


Biophilia

Coined by Harvard biologist Edward O. Wilson, it means that “human beings have an innate and evolutionary-based affinity for nature.” How can you reconnect with nature in the face of the threat of urbanization? You may allow your employees to place small potted indoor plants on their desks. A realistic approach for this is a view to the outdoors that overlooks trees, of course. Based on a study entitled “Human Spaces Report: Biophilic Design in the Workplace” by Human Spaces where they surveyed EMEA (Europe, Middle East and Africa) employees, biophilic design improves well-being by 13% and productivity by 8%. It is also known the colour green boosts creativity.

Cool and green workplace of ThinkGarden

Noise

Office noise could be in the form of clanking of heels, droning air-conditioning, ringing telephone or officemates chatting a few feet away from you. This is a challenging feat especially in open office floor-plan because it can decrease occupants’ productivity up to 66%, according to an article in TED Blog.

Interior layout and active design

This pertains to workstation density, ergonomics and active design. A high workstation density is one of the contributors of noise pollution and affects work performance of its occupants because of visual distractions. Applying ergonomics in the workplace creates safe, comfortable, and productive workspaces, as stated by Dohrmann Consulting. Lastly, active design lets the occupants move freely that helps improve blood circulation and metabolism.


Look and feel

A house can be renovated in a quarterly or yearly basis. However, it is a waste of money in an office setting. The World GBC’s report says this factor is important for brand identity, employee retention and recruitment and attracting/retaining clients.


Amenities and location
Is your building located near public transport terminals? Do you have facilities where employees can engage in physical activity? Think of other ways to help your employees to relax and unwind. Consider it as reward for their job well done. Having a place or activity that gives them a chance to regain their focus and strength improves their productivity and mental health.

That giant slide at Corus Entertainment

Is your building located near public transport terminals? Do you have facilities where employees can engage in physical activity? Think of other ways to help your employees to relax and unwind. Consider it as reward for their job well done. Having a place or activity that gives them a chance to regain their focus and strength improves their productivity and mental health.