Any type of property can be a good investment opportunity. Commercial properties offer more of a financial gain than residential properties. From retail buildings, office buildings, warehouses, industrial or apartment buildings, take a look at 4 reasons why you should invest in commercial real estate.
The most important reason for investing in a commercial property is because of the earning potential that you stand to get out of it. Statistics have shown that commercial properties have an annual return between 6%-12%.
As an owner of a commercial property you can and its recommended that you become an LLC. As a landlord you will work with other business owners who are eager to rent and establish a good relationship with you. These relationships will build your professional network and keep your interactions with your tenants professional.
For retail tenants, they have a great interest in maintaining and improving their store and storefront because it’s good business. This is great because as the owner you and your tenants interest are aligned, which will ultimately increase the value of the investment.
As far as leases are concerned, there is a triple net lease that you will get familiar with. The basic concept is that as an owner, you do not have to pay any expenses on the property. The lessee handles all expenses directly, including real estate tax. You just worry about your mortgage.