Fit Small Business highlighted the Top 24 Mistakes in Commercial Real Estate Investing featuring comments by Mike Hills, Atlas’ vice president of investment brokerage:
13. Underestimating Vacancy & Tenant Improvement Costs
Vacancy and tenant improvements can be long and extremely expensive, especially in commercial real estate. For example, if an owner buys a commercial building that needs a lot of repairs and doesn’t have respectable tenants, the time that it takes to make money from that investment can take a really long time. And if the business owner is underfunded, they can lose a lot of money in a building until it becomes profitable.