5 Reasons to Invest in a Commercial Real Estate in Washington

Posted On Thursday, 03 September 2020 21:09

It’s no secret that investments in commercial real estate (CRE) was initially reserved for the super-rich or corporate investors. But after the Jumpstart Our Business Startup, or Jobs Act, was signed by former President Barack Obama in 2012, millions of investors have jumped onto commercial real estate.  

Commercial real estate in Washington involves properties like warehouses, apartment buildings, office complexes, or industrial buildings. Although they all vary in certain dynamics such as functionality, management, and cost, the potential benefits make a convincing case as to why buying CRE is something any real estate investor should consider.

Here are 5 reasons why you should invest in commercial real estate Washington state

1. High Financial Returns

Naturally, as an investor, you want to make a profit from the money you invest. Buying commercial property can be a great way of creating wealth. It may involve some work depending on the state of the property you buy but you’re bound to see a return for your financial efforts.

2. They Appreciate to the Owner’s Benefit

Real estate properties increase in value over a period of time. The appreciation can be in the form of land price, rent increase, or the overall market’s value of the building. Its appreciative nature gives investors the opportunity to cash in at a profit should they decide to sell their property. 

3. Provides Steady Cash Flow

Commercial real estate properties usually deliver concrete cash flow monthly or annually depending on the agreement between the tenant and the property management team. 

You want to buy properties that promise high occupancy rates and attractive returns in rent charges. You can reach out to a realtor specialized in properties within Washington who can provide guidance and advice on available and profitable properties in the state.

4. Leverage High Inflation Rates

Commercial real estate is a great way of ensuring you benefit from the inflation rates of the current economy. With tenant companies making more in revenue, you can raise your rent or yearly leases to stay competitive in the market. 

5. Real Estate Is a Tangible Asset

A key benefit of investing in commercial property is that it is an asset that investors can physically see, touch, and feel. 

It cannot be equated to other investments such as buying shares in a company. The company might be there one day and gone the next leaving shareholders at a loss. Unless the investor took a mortgage or there happens to be a drastic natural calamity, then the property will always be there.

Commercial Real Estate Washington State Is the Real Deal 

Investing in any sort of real estate can prove to be a worthwhile investment especially if you take the time to learn how the industry works in detail. However, when it comes to commercial real estate, Washington state offers high lucrative rewards albeit with a few risks to consider. 

Make sure you understand in full what you stand to gain or risk losing when it comes to investing in commercial property so that you can make the best financial decision. 

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