Commercial Buildings - How to decide on renovations

[Anthony Pace]

Hey Investors,

So far I have only worked in residential real estate but I have always had interest in commercial development. I get a decent amount of vacant commercial building deals but pass because I never know what to do with them. I would love to buy one to keep and completely renovate it and lease out to a business or possibly run the business myself. But my question is, how to decide how to renovate the building to attract certain businesses for leasing option. I would hate to renovate a building to be used as a restaurant then a convenient store company reaches out to me to discuss leasing options. Any help or suggestions will be greatly appreciated.

Cheers!

[Tyler Kastelberg]

@Anthony Pace

Anthony: I second @Jeff Kehl

One thought ... if the market vacancy and other local indicators suggest you would be able to find a tenant, you could purchase a commercial building and "shell it out." Completely demo the old interior, nasty dry wall, and false walls. Install fresh drywall (where it makes sense) and repaint a nice white color. This will give prospective tenants a clean slate with which they can re-imagine the space on a tour.

Best of luck!