How to judge whether a shop is worth investing?

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See if popularity is permanent or time-sharing.

When it comes to shops, you have to talk about the retail consumer market, because shops are where you buy things and spend money. The value of the shop you choose to invest in is largely determined by the consumption power in this shop, which has a great relationship with the area where it is located. Here I introduce two concepts for your reference:

Static consumption area is a consumption area with a certain number of consumers and a large amount of consumption in a specific period of time, which is called static consumption area. For example, in a community business district that only focuses on the interior, a large number of customers will only spend money here at night and on weekends and holidays. At other times, such as working hours, the whole business circle will be quiet, few people will shop, or only some non-mainstream consumers such as the elderly and children will spend. Such areas are called static consumption areas.

Dynamic consumption area refers to a consumption area where there will be a large number of mobile consumers and consumers within the specified business hours, regardless of the fixed time period, which is called dynamic consumption area. This dynamic consumption area is now more defined as "business circle" or "several commercial centers", just like Wangfujing Pedestrian Street, Xidan Shopping Center and other existing consumption areas with relatively large consumption flow. Commercial radiation covers the whole of Beijing and even the whole country, such as Zhongguancun electronic market. Such areas are called dynamic consumption areas.

We invest in shops for rent or sell them after appreciation. Even if I run my own business, I hope to make more money, so the more people come to this store to spend money, the greater the value of this store. In addition to operational problems, it is more determined by the number of people passing through the store. The more people pass, the larger the base of consumers. Static consumption areas usually have no people, most of them will be fixed people, while dynamic consumption areas are more mobile people. For example, Wangfujing Street attracts more than 500,000 tourists every day, attracting tourists from all over the country. The value of shops in its area is difficult to estimate now, so the flow of people per unit time and space in the business district largely determines the quality of this commercial property. But this is not to say that the shops in the static consumption area are not good, and the size and grade of the consumer population in the area can also make the shops in the area valuable. Take the four buildings on the west side of CBD, such as Fenglian Plaza, union buildings, Fanli Building and Life Building, which are surrounded by four buildings in this area. In the morning and afternoon, there are not many people who consume, but at noon and after work, the consumption area is bustling. Tens of thousands of white-collar workers in the building regularly spend money here and drive the surrounding commercial market. The bottom business of Kuntai International Building next to it was sold at a price of more than 30,000 just after opening, and the sales situation was extraordinary.

Beware of promises of high returns.

Now we see some commercial media articles on the Internet, analyzing the return on investment of commercial properties. The rate of return 15% is a frequent figure, which tells how much you spent on buying a shop and then renting it out. If it is a mortgage, you have to count the interest paid to the bank, then a set of calculation formulas for the return on investment, and then a very correct addition, subtraction, multiplication and division to draw a conclusion. Basically, investors who invest in commercial properties can get it back in about seven or eight years, and then you make a net profit. Not only that, but now this figure often appears in advertisements of many commercial property projects and endless sales staff. As a professional engaged in commercial real estate planning, the author is very indignant. Strangely, 15% has become a final conclusion. Who did this? Demagogic and irresponsible.

Commercial property investment is a problem to be considered comprehensively, and it is impossible to be more dynamic than residential property investment. As we said above, the value of commercial property is largely determined by the flow of people and consumption, which are influenced by traffic, humanities, history, regional environmental planning, scale, architectural characteristics, investment restrictions, as well as the entire commercial retail market, commodity grades and fashion trends. It is risky to make a hasty decision without analyzing these factors or considering only a few aspects.

Take the characteristics of commercial properties and buildings for example. The functional format distribution of each commercial property is different. Some can only do catering, while others can only open boutiques. Brand customers in various industries will have their own highest rent standards when choosing the store location, among which the catering rent is lower and the boutique and brand clothing store rent is higher. Therefore, when you want to invest in a shop, you should analyze what it can and can't do, then analyze the rent range among the selected tenants, then get to know the surrounding shops, get the most feasible rent estimate, and then calculate the return on investment. The return on investment of shops in different formats is also different.

It depends on the prospect and business environment of the store.

In addition, when considering investing in commercial properties, we should consider the prospects of its business environment and have a developmental vision. There are many investors who buy some shops that look biased. A few years later, a commercial atmosphere gradually formed here, and the value of regional commercial properties rose rapidly. Although the early rent is very low, it is difficult for merchants to find it, but when the time is ripe, they can sell their shops at a price several times higher than the purchase price. This is not the concept of 15%.

If you want to be an unbeaten winner in shop investment, you must believe in yourself, understand the characteristics of commercial real estate, learn the laws of commercial real estate market and know how to operate. Everyone who has a house will live, but those who are not sure about business will do it, so we can learn to do business from investing in shops and even more.