The commercial real estate market is hot, particularly in Minneapolis and St. Paul. With a thriving economy, there are more residents moving to the area, which naturally leads to an increase in demand for multi-family housing, retail development and office space to house all of those new jobs. Now is an exciting time for many to consider getting into the commercial real estate market, but it's important to recognize that this industry does not offer an easy opportunity to get rich quick. It takes a dedicated individual who is willing to work hard, persevere and focus on their results. Many commercial real estate veterans have said that these are some of the best tips for those who are new to the industry:
Separate Emotions from a Commercial Real Estate Transaction
New commercial property investors are naturally excited about the prospect of their first major deal, which is understandable. They have put their heart and soul into finding the right property and making a competitive offer. However, it is critical that property investors try to remain unattached throughout the real estate proceedings. It is too easy to make emotion-fueled decisions, which can ultimately impact the success of a project. While it is an exciting time in a commercial real estate investor's career, it is still important to remain cool, calm and professional throughout the negotiations. This is just the first of many commercial deals that will be completed throughout the course of a career.
Focus on Developing Leadership Skills
A new commercial real estate investor likely will enroll in real estate courses related to commercial properties, investment management, negotiating, financing and marketing. While these are all important educational opportunities that will provide a new investor with a solid understanding of the industry, it's important to recognize that there is more to being a successful commercial real estate investor than just knowing the basics.
The most successful people in the industry are not only informed, they also are natural leaders. They take time to hone leadership skills such as accountability, honesty, and integrity. They work to become valued members of their communities who work to improve the entire region, not just focus on their own profits.
Be Willing to Make Calls—And Lots of Them
Commercial real estate investors who want to get their foot in the door in this competitive industry have to be dedicated to doing the hard work that comes along with that. No investor is going to decide one day to purchase commercial properties and instantly have dozens of leads. To get started, a commercial real estate investor needs to make a list of all the people that they know who may own commercial property or be interested in leasing commercial properties.
Then, they need to find out who all of those people know who are involved in the industry. After a web of contacts has been made, a new commercial real estate investor must sit down and start making phone calls. It's the only way to really get going in the industry.
Consider Working in a Niche Commercial Market
The commercial real estate landscape can be overwhelming, particularly in hot markets like Pipestone County. There's so much to choose from—from multi-family housing developments like luxury condominiums and apartments to expansive office space designed to hold multiple businesses. An individual who is hoping to get into the commercial real estate industry should consider focusing on a niche aspect of the market when they first start out. This allows them to become well-known as a commercial real estate investor in a particular sector, and once they have developed a solid reputation they will be able to grow their business from there.
Know that Success Depends on Having the Right Team
No commercial real estate agent is a success on their own. It takes a village to thrive within the commercial real estate industry, so new investors should begin networking as soon as possible. It's important to know loan officers and other investors who can offer financing options as well as business leaders, real estate agents, and marketing professionals who can assist in growing a new business. Commercial real estate investors should regularly attend local networking events and industry trade shows to begin generating contacts.
Those who are interested in getting into the commercial real estate industry should begin their adventure by partnering with an experienced real estate agent who is familiar with the commercial market in Minneapolis and St. Paul. A reliable real estate agent who is well-connected is going to have access to the top commercial properties as soon as they hit the market, and can significantly increase a new commercial investor's chances of success. To learn more about the available commercial properties in the Twin Cities, contact us today.