Advertisement
Wednesday, 11 December 2019
Agent Resource Center
Agent Resource Center

7 Benefits of Investing in Commercial Real Estate

Written by Jim Hughes Posted On Tuesday, 19 November 2019 05:30

For the longest time, Commercial Real Estate (or CRE) investing has been accessible only to more seasoned investors—those who have larger portfolios. Beginner investors, though, would find this particular market difficult to crack...but that was before. 

Today, thanks to the internet and online marketplaces, anyone can be an investor in real estate, even in CRE. In this article, we are going to learn what CRE investment means and its benefits. Let’s get started.

What Is CRE?

So, what is Commercial Real Estate Investing anyway? This is the procurement and management of commercial properties. These structures include (but are not limited to) retail buildings, office spaces, warehouses, and even apartments. 

The bigger question is why you should put your money there in the first place. Don’t worry. You’ll find the different benefits of investing in commercial real estate below.

The Benefits of CRE Investment

1. The Profit 

Of course, the first reason why anyone would want to invest in anything is the promise of profit, and for CRE, there’s actually a lot of it. You can get your ROI faster due to the influx of rental income. And since these are businesses we are talking about, you can significantly raise the rent compared to a residential structure. 

We also suggest adding amenities to the property to further boost your ROI. You can get these last-moment renovations done by getting a direct deposit payday loan. You won’t even have to leave your house to get your funds. They are quick and convenient.

2. Less Risk

Another reason why we love investing in CRE is that it is less volatile. You can secure long-term lease contracts from clients for as long as 3-5 years, sometimes even longer than that. By doing so, you are already ensuring your profit for the next half a decade or so, regardless of what economic swings the future might bring.

3. Tax Incentives

Maintaining a commercial property is a hard and sometimes expensive task. The Internal Revenue Service recognizes this so that’s why they offer tax incentives to its owners especially on expenses related to upkeep and maintenance. 

4. Conscientious Clients

Speaking of upkeep and maintenance, you will be pleased to learn that these chores are significantly easier compared to residential properties for two reasons. First, your clients are business owners as well so you can expect more professionalism. Second, since most of them are establishments that offer products and services, they’ll be concerned about maintaining their image as well and will surely try hard to keep the premises as clean and well-kept as possible.

5. Realistic Responsibilities

As property investors ourselves, one of the things we absolutely hate is emergency calls in the wee hours of the morning. Those who have invested in residential properties are all too familiar with these calls as well. 

You’ll be pleased to know that you will rarely experience this with commercial establishments since they have set operation hours. They will also be gone most of the night. To further make sure that this doesn’t happen, we suggest that you beef up your property’s security features and insurance. In this way, you will be able to sleep every night without worries.

6. Less Competition

Another thing that we don’t appreciate in residential property investment is the fact that it has a lot of competition! Due to their bigger structures, expect your competitors to be less in CRE. What’s more, is that CRE offers a great variety of different establishments. Think of them as niches. The more specific your niche is fewer competition and more clients you’ll have.

7. Increased Value Over Time

Finally, one of the secrets of success in real estate is making sure that your property appreciates its value over time. That can be difficult to do with residences, especially if you don’t have much space to work with.

CRES, though, well they’re another thing entirely. There’ll always be a new amenity that you can add or a feature that you can install. Plus, if you have secured a prime location where tenants will thrive, then other investors will surely fight over your property should you decide to sell it in the future.

Investing in Commercial Real Estate is a huge undertaking, true, but it also offers a lot of benefits. Not only does it have a faster ROI rate, but it also has fewer risks. The best thing about it, though, is that it’s fairly easy to triple its value with just a few tweaks. We welcome you to the wonderful world of real estate investment and bid you good luck!

Rate this item
(1 Vote)
DocuSign 30 day free trial

Agent Resource

How to capture your next prospect - click here

Realty Times TV

1/8

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.