Investing in commercial real estate can feel like speed dating—lots of potential, some red flags, and the hope that you find “the one.” But before you commit, evaluating the return on investment (ROI) is crucial. If you’re looking to buy or sell commercial property in Indiana, you need a real estate agent who knows the market (spoiler alert: that’s me!).
Step 1: Crunch the Numbers (Yes, You Have to Do Math)
ROI is your best friend when deciding whether a property is worth the investment. The formula? Pretty simple:
ROI = (Net Profit / Total Investment) x 100
For example, if you buy a retail space in Indianapolis for $500,000 and make a net profit of $50,000 annually, your ROI is 10%. Not bad, right? But hold on—there’s more to consider.
Step 2: Consider Cash Flow & Expenses
A solid commercial property should have consistent cash flow. Indiana’s commercial market is thriving, with retail vacancy rates at 5.7% and industrial spaces seeing record-low vacancies (per CoStar). The key is knowing whether your property can stay occupied and profitable.
Don’t forget to factor in expenses like property management, maintenance, taxes, and—yes—Indiana’s unpredictable weather that can wreak havoc on a building’s exterior.
Step 3: Location, Location, Appreciation
Commercial properties in growing areas like Carmel, Fishers, and Fort Wayne tend to appreciate faster. Pro tip: Look at job growth and population trends—Indiana’s economy has been steadily expanding, making it a hot spot for commercial investors.
Let’s Make It Happen
Evaluating ROI doesn’t have to be a headache. Whether you’re buying or selling commercial real estate in Indiana, I’ll help you crunch the numbers, navigate the market, and seal the deal. Ready to invest wisely? Let’s talk!
Photo by Peter Robbins on Unsplash
