Downtown of the City or Suburbs? Where to Buy Commercial Real Estate?

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Investing in real estate requires elaborate planning in terms of finances and prospecting for the best localities. Some investors prefer the leafy suburbs whereas others value the downtown areas.

Real Estates in Suburb Areas

Buying commercial real estates in suburb or residential areas has its pros and cons. The decision lies with the buyers needs.

Pros of Buying Real Estates in Suburb Areas


Real estates in suburb areas tend to be associated with very affordable prices. This is attributed to the fact that population distribution in such places is very low. These fair prices will be significant in attracting individuals to buy commercial real estates in these cool environs. This implies a reduced cost in terms of capital expenditure on the part of the buyer.

Promoting Good Health

Since the places are far away from the busy towns that are populated with industries that emit all types of pollutants, they fresh air in this regions tends to promote good health for the people living there.

Social Facilities

Suburbs provide an opportunity to enjoy the social facilities without being subjected to artificial shortages such as water rationing. This is of great benefit since no additional costs will be incurred in engaging a contractor to supply the commodity.


Security tends to be optimum because most idlers associated with criminal activities do not fancy areas away from towns. This enables the buyers to have peaceful time and hence focus on more productive activities.


Transport is available at standard rates and cases of delays attributed to traffic jams are unheard of. This provides an enabling environment for businesses to thrive.

Large Compounds

Real estates built in the suburbs normally will have large compounds. These can then be improved to provide spacious parking space for the buyers. This implies that these estates also have the ability to provide recreational grounds for sporting activities.

Cons of Buying Real Estates in Suburb Areas

Despite all these numerous benefits attached with the suburbs, a few challenges exist. Most people do not like remote places due limited services. This may be a hindrance towards making a timely return on the investment because it may take a long time to find and get potential tenants.

Buying a Commercial Real Estate in a Downtown Area

This also has its advantages as well as disadvantages. The ones below can guide you in making your decision.

Pros of Commercial Real Estate in a Downtown Area

Immediate Returns

Buying a commercial property in a downtown area means that returns will be realized immediately. The demand for housing is very high coupled with a high population. International organizations prefer to have their affiliate offices located in towns and pay an attractive rate. This enables the buyer to expand the real estate empire within the shortest time possible. Most service providers are strategically located within the town. This means that should there be any faulty equipment or emergency need, and then the issue can be sorted out promptly without unnecessary delays.

Numerous Modes of Transport

The availability of numerous modes of transport enables the swift movements of both people and goods. Goods for sale are intended to reach their destinations without delay especially if they are perishable. Most commercial properties involve shops and other forms of retail outlets and therefore the well constructed roads in the downtown areas are convenient for them.

Communication Network

Communication is an important aspect of business and life in general. Urban areas provide a reliable communication network suitable for those people living there.

Access to Credit Facilities

Buying a commercial real estate in the towns may enable the buyer to access credit facilities from commercial banks. The attractive locality forms a reliable source of security for the loans that can be advanced to the owners to enable them acquire more estates. Commercial estates require an adequate and constant supply of power. This is only applicable in towns where diesel powered generators are evenly distributed to provide electricity in the event the supply from the national grid is unavailable.

Cons of Commercial Real Estate in a Downtown Area

High chances of buying substandard

Due to the high demand for real estates in industrial towns, buyers may end up purchasing units that do not meet the required standards as outlined in the building regulations. These structures tend to collapse once occupied. As a result buyers will end up incurring huge financial loses which may take quite some time to recover.

Bureaucratic By Laws

Local authorities in towns tend to have many bureaucratic by laws relating to the purchase of real estates. Buyers end up spending a lot of funds in order to obtain the necessary documents. The process may take several days hence the buyer ends up spending a lot of time making a follow up. This denies people the opportunity to attend to other equally important issues at the appropriate time.

High Chances Of Sudden Financial Loses

Commercial estate owners in towns may suffer sudden financial loses occasioned by the need to expand and construct new roads. It calls for the demolition of the housing units so as to create the required space.

One can now make a decision basing on the above points to decide the best place to buy a commercial real estate.

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