There are many benefits to purchasing a shopping mall, office park, restaurant, gas station, convenience store or office tower. As Income is valued on its usable square footage, the opportunities are endless.
Property used solely for business purposes is considered a commercial property. These may consist of shopping malls, office parks, restaurants, gas stations, convenience stores and office towers. There are many benefits to purchasing a commercial property. Commercial property leases just as effectively as residential so it may be worth taking a second look at this type of investment.
Walgreens picCommercial property is valued differently than residential property. Income on commercial real estate is directly related to its usable square footage, which isn’t the case with individual homes. This can create a unique opportunity in your investment portfolio.
With commercial real estate, the leases are longer than on single-family residences so you have a longer span in-between tenancies. This prolongs your financial security. When you get a good anchor tenant, other potential tenants will want to lease to be near the anchor tenant so with careful strategy and education, your commercial property can be a big success.
Investing in commercial real estate often requires a considerable amount of startup capital and extensive knowledge of the legal, financial and regulatory aspects of this field. One of the hallmarks of commercial real estate is that they are income producing. Unlike most stocks, which pay no dividends, commercial real estate is defined by its ability to pay out regular cash distributions. Having a knowledgeable team to assist you is crucial to your success when investing in commercial real estate. We are here to help you.