Investing in commercial property: know the pros and cons

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Investing in commercial property: know the pros and cons

A commercial property, just like any other real estate, is a good investment. Examples of commercial properties include office buildings, retail buildings, industrial buildings, warehouses, apartment buildings, and properties that have a combination of these uses.

Here are the PROS of investing in a commercial property:

The yearly income you get from a commercial property is two times higher compared to owning a single family renting property.
Commercial property renters are usually limited liability companies, which means the transaction between you and your tenants will be more professional via a B2B relationship.
Business owners want to make sure that their stores are presentable to their customers. This means, your commercial property will be taken care off properly.
The businesses run in your commercial property will only be open during business hours. This means, your work ends, when their businesses close for the day. You won’t experience emergency calls during unsociable hours.
You can determine the price of the rent on the income the business owner earns.
The renter can be the one to pay all expenses, like the real estate tax. You just have to pay for your property’s mortgage. This will depend on the triple net leases regulations that you will have.
There are more consumer protection laws involved in residential properties, which means commercial properties have more flexible lease terms.

As there are always two side of the coin, here are the CONS to owning a commercial property:

You will manage more aspects and you need to spend more time with a commercial property.
You must seek professional legal help to make sure all transactions go accordingly.
Owning a commercial property requires a larger initial investment.
Businesses have plenty of costumers, which mean there will be more people coming in and out of your property. More people mean more risk.

However, you can get a real estate attorney to maximize and take advantage of the pros, while avoiding the cons. Just fill the Enquiry Form on the right and soon an expert attorney will contact you.

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