Madison Management Commercial Properties And Life Cycle Stages

Goals and Objectives

• When investing in a property it is important to consider what stage of its life cycle the property is in. Once you identify the stage of the property life cycle, you can easily evaluate the property for all its features and flaws.

• Identifying the life cycle stage is not just important when acquiring or investing in a property. It is also important to evaluate the life cycle of your already owned assets to help you decide the course of action so as to maximize your return on investment.

• With the help of a property management firm like Madison Management, it becomes easier to keep a track of your property and its life cycle and take necessary actions to boost your investment.

Embassy crossing

Liberty rock shopping center

Life Cycle Stages

• List requirements for the following resources:

– The real estate boom

– The slow slump

– The recovery

• The real estate boom

During this cycle, as an investor you’ll experience a purple patch. If your property was listed it will be occupied faster, so the non-occupancy period will be reduced. Not only that, you will be able to charge a higher rent because of the scarcity of available spaces in the market. You are not obliged to make any forced sales or sign off any mortgage deals. The cash flow will be steady and your return on investment will be at its optimum.

• The slow slump

This is the period when as an investor, you will have to take some tough calls and trust the investment that you made. In this period it is best to make any decision with the close collaboration of professional property management firms like Madison Management. In this period it is likely that the down time on your property will be prolonged. It may also happen that you will have to lease your property at a comparatively lower value as the property values will fall.

• The recovery

The recovery stage is short lived and lasts lesser than the boom stage or even the slump. At this stage, as an investor, you start to gain back on your cash flow. This enables you or gives you the scope of adding to the value of your property by investing further in it or even further your green goals as potential clients in this phase will be more willing to pay for extra features.

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