If you have ever thought to yourself “is leasing an office building worth it,” you have come to the right place. Investing into commercial real estate can be a tricky process if you are unfamiliar with the business, or if it is your first time looking for property that is not for industrial purposes. This article will uncover the many pros about investing in commercial real estate.
Once you invest in a commercial property, your annual return can range anywhere from approximately 6% to 12%. This is a significant benefit in comparison to industrial real estate, as properties such as family homes only range between 1% to 4%.
There are many state laws surrounding real estate for residential properties. Fortunately, commercial real estate does not have to deal with these laws. This allows for the lessee to have a lot more control over their property, as well as freedom to distinguish themselves.
Business owners with commercial property are typically more well-known people in the industry. Getting your name out there and allowing for others to build connections with your business only creates a better reputation for the work environment. There is an element of B2B (business to business) relationships that can be established from investing into commercial real estate.
Commercial real estate holds an element of ease when it comes to evaluating the price of the property, especially in comparison to residential real estate. In commercial real estate, one can request to view the current owner’s income statement and arbitrate a price based on what they see. The asking price may also be set where the investor can earn the capitalization rate for the area, which is another unique factor that only commercial real estate contributes to. The cap rate can be determined by dividing a property’s net operating income by the current market value,
If you are looking to invest into commercial real estate, contact us today by calling (508) 588-5600, or emailing us at firstname.lastname@example.org. Taking the first step can be scary, so allow our experts here at Quinn & Associates to assist you in the process of investing in commercial real estate.