Over the last couple of years, we’ve seen the commercial real estate market change considerably. As people choose remote work over daily trips to the office, many companies have been downsizing their workspaces. However, this doesn’t mean there isn’t an opportunity in commercial real estate; it just means you have to find the right one.
Looking to maximize the ROI in your commercial real estate investment? The key is finding the proper tenants to fill the space as the commercial market is rapidly changing.
WHAT’S A GOOD ROI?
As you research commercial real estate opportunities, you may be wondering what a strong ROI in commercial real estate looks like. Typically, commercial real estate properties have a return range of 6% to 12%. There are a number of factors that impact potential ROI such as the economy, the area your property is in, and as seen most recently, a pandemic. Still, the ROI on commercial real estate is stronger than that of a single-family home – which usually comes in at 1% to 4%.
WAYS TO MAXIMIZE ROI
Similar to most businesses, there are ways to effectively increase your return on investment with commercial real estate.
ONLY PROCURE THE SPACE YOU NEED
This one may seem obvious, but it’s important to mention. Acquiring too big a space can greatly hurt your ROI if you aren’t able to fill or use all of the square footage appropriately. Over-renting space is not only costly but can cause you to lose money over the course of your lease agreement.
If you’re interested in a franchise opportunity, MY SALON Suite, is a great real estate opportunity for first-time investors. We know how large a space you need and can guide you through the site selection process to ensure you’re not renting more square footage than necessary.
USE A REAL ESTATE BROKER
Many might think that handling the research and negotiating on their own will save them money. While you won’t have to pay broker fees, you most likely won’t get the best deal on the property. A good real estate broker can not only get you a great space but can also negotiate the lease terms in your favor, saving you money in the long run.
DECORATE YOUR SPACE
At MY SALON Suite, all of our franchise owners make updates to their commercial spaces. In fact, the décor is decided by the tenants. Our franchisees retain the salon and rent out individual suites or rooms to budding entrepreneurs within the beauty industry. Tenants, or Members get to decorate their suite as they see fit and can sell whatever products and salon services they like – all for the price of rent to our franchise owners.
ADD MORE REVENUE STREAMS
With the MY SALON Suite business model, our members are not just hairstylists. Our locations have the ability to offer so much more including barbering, skin care, nail care, hair removal, tanning, and makeup services, to name a few. The variety of services our locations can potentially offer allows our franchisees to build a multi-faceted business – therefore maximizing their ROI.
MY SALON SUITE: A LEADING COMMERCIAL REAL ESTATE OPPORTUNITY
A large factor in determining ROI in commercial real estate is who you partner with. At MY SALON Suite, our franchise partners get to take advantage of our proven business model, national brand recognition, ongoing training, and support during commercial build-outs.
Our investors act as landlords of their salons. They’re required to properly maintain their salon, recruit members to fill any open spaces and collect rent from those already in business with them.
We require franchise candidates to have a net worth of $1 million with $200,000 in liquid assets. However, no previous salon experience is necessary to become a franchisee. Our brand has franchise partners of many backgrounds. Since our business model allows for semi-absentee ownership, many of our owners only work about 10 hours a week – giving them ample time to enjoy retirement, work on other ventures, or even have a full-time job.
To learn more about our franchise opportunity, request more information today.