Reasons to Invest in Commercial Real Estate
American Investor and entrepreneur Robert Arnott once said, “In investing, what is comfortable is rarely profitable.” When making an investment, you will have to step out of your comfort zone to reap the benefits. If you’re interested in making an investment, it may be in your best to work with professionals who know commercial real estate. At HOWE Real Estate, we will work with you in getting the commercial space you’re interested investing in; our job is to assist you, so you see the best return on your commercial investment.
Our team at HOWE Real Estate provides commercial real estate brokerage, real estate development, and consulting in retail, industrial, office, mixed use properties, development, land, multifamily, and investments.
Thinking about how to invest? We suggest investing in commercial real estate. Why? If you invest in commercial properties correctly, there is a better chance you will see a higher annual return than other types of investment. Investing in commercial property is also another great way to grow and diversify your portfolio.
On the fence? We understand that investing (in anything) is a big commitment, so we wanted to share with you some reasons why you should consider in investing in commercial property.
Benefits of Investing in a Commercial Real Estate Property
Commercial real estate can bring in a bigger cash flow. Commercial real estate brings more returns in than residential properties per square foot and on the initial basis. Also, the more units your space has, the more income you can generate. Commercial properties can expect an annual return of six to 12 percent of the purchase price, according to Crickey Realty Advisors. A single-family rental will only bring in one to four percent annual return. It’s also easier to predict cash flow since commercial real estate leases tend to be longer than residential leases.
Your investment income isn’t dependent on one tenant. If a tenant or two leaves, you can still generate income from other tenants while waiting to fill in the empty spaces.
Commercial spaces won’t require as much evening or middle of the night service/emergency calls, since businesses close for the evenings while residential properties are occupied 24/7.
The relationship with yourself and a commercial tenant is more business-like and professional compared to the relationship with a residential tenant.
The assets secured by leases are higher than stock dividend yields.
Historically, commercial investments have a great appreciation in value that beat out other types of investments. Properties can easily go up in value.
In a commercial investment, the property’s land and structure both have value.
There are many tax benefits to real estate owners, including a mortgage interest deduction and a depreciation deduction.
You can place debt onto the property. You can grow your money by using leverage.
You can have a steady flow of income from leases, and commercial property leases are usually a higher rate than residential leases.
There’s less competition in the commercial real estate market compared to the residential real estate market. There’s a lot less investors, so you can find better deals and spaces available.
Along with all the about reasons to invest, investing in commercial real estate can give you a sense of pride. Its’s a great feeling knowing you own a property that produces income and that is a good investment with a constant return. The reasons to invest in a commercial property go well beyond this list, and our team at HOWE Real Estate would love to get the conversation started with you.
Right now, in Louisville, there are many commercial property options available from retail and office space to industrial and mixed-use. Our team of brokers can offer you comprehensive support from the first conversation to the last in your property-buying process. We offer location scouting to help you find the best commercial space in Louisville that is right for you. We can also help you find tenants and offer commercial property management services.
Thinking About Investing in Commercial Real Estate in Louisville?
Ready to invest in commercial real estate in Louisville? We’re here to help! Our team at HOWE Real Estate are experts in this commercial market. If you’re looking for commercial real estate brokers to help find you a commercial property, let us help you through the search. To contact us, send us an email or call 502-890-4475.