1, Location of property -

Buying pre-leased isn't an easy task but a complicated one as it requires due diligence and lots of legal work before you invest your hard-earned money into a pre-leased commercial property. The 1st and most important aspect is choosing a grade A location along with New building is key to have appreciation in the pre-leased property.

2 Tenant profile -

Tenant Profile or company profile also plays a vital role in choosing a pre-leased commercial property investment. Having to Grade A tenant with a longer Lock-in period makes it certain that tenant will stay for a longer time which in return will help in getting back most of the money you invested through rentals along with Capital appreciation as per market trends.

3 Building age & Maintenance-

Another aspect you need to look into is that is the building you are buying a rented property in is new or old one if its a new building that would be good for you to hold on your investment for a long time. Tenants tend to move to new buildings as they meet the standards set by the global authority to make sure the safety of the company. Another thing you need to watch out for is the Maintenance Agency. if the building is in good hands then it will last for a long period and will keep on attracting tenants.

4 Duly Documents verifications-

After finalizing tenant, Building, and location the next important thing you need to do is go through lease agreement and property documents. it is very important to do this due diligence through a professional broker who is into pre-leased investment. After making proper verification you should proceed with a token amount.

5 Difference between rented and vacant -

Before you make a payment I would like you to keep an eye on the price of Vacant property and pre-rented property. If the gap is more than 60% I would suggest not buying that property. Because it will take 3-4 years of rentals to fill that gap and if the tenant vacates the office after expiring lock-in period your investment could turn in to a nightmare.

It is always better to hire the service of a professional broker who deals exclusively in pre-leased properties. Sometimes people go through unprofessional brokers to save some little money and sometimes saving few bucks now can turn into the biggest loss in the coming time.