I’ll start with my usual note that making an investment in real estate is not a decision to be taken lightly, that is why it needs to be done right and given to the right hands.
There’s no doubt that every investment property should be profitable, but what makes the return fluctuate is the type of properties being invested in. Today I will talk to you about the high return of commercial properties.
A commercial property is one that is being used for any business activity, such as shopping centers, offices, warehouses, and medical clinics & outlets. Of course there is the obvious steady source of income that comes from renting out the property, it is a great source of financial comfort and stability.
On the other hand, there is a significant increase in property value when the commercial property starts taking its full shape. Lets say the property gets a clinic tenant, and then a pharmacy tenant, that will turn your property into a powerful services provider and therefore it’s value increases. A few weeks later you acquire a dentist clinic tenant, which increases the value even more and so on.
Businesses are based on customers and nothing else; customers buy products and services, the more customers the businesses receive the higher their profile becomes and therefore the value of your property increases.
Renting to business tenants has many additional pluses. Business owners take pride in their businesses and some even call them “My baby”, this results in them taking great care of the property to keep a fresh public eye on them. They also tend to maintain healthy and smooth B2B relationships with their landlords.
The right real estate agent will be able to give you the accurate advice you need and help you make the right choice in terms of location, size, business profiles, and how to establish a fully functional commercial property that thrives.
Please don’t forget that I’m available to answer all your questions so feel free to contact me any time.