Benefits of Investing in Commercial Real Estate

Investing in commercial real estate properties brings hick in income and equity potential, but with that, the risks seeming is greater than residential properties. However, if we consider just residential property investment, then we are missing out on a potentially huge opportunity.

Commercial real estate is land or properties that intended to turn a profit either from capital gain or rental income. Commercial properties in San Diego County include anything more than five dwellings.

Another type of commercial property may include office spaces, retail buildings, industrial buildings, apartment buildings, warehouses, or a mix of residential, commercial, and industrial. For example, there might be a retail store or café or restaurant on the ground level, while offices are located on higher levels.

Below are the benefits of investing in Commercial Real Estate:

Higher Income Potential

With commercial properties, you can increase annual return, because of the property size and number of tenants in a commercial property can be high. Therefore, yearly returns can be much higher than other investments, like stock dividends.

More tenants, less risk         

In commercial real estate, there is less risk of income loss as tenants also cover your operating cost. In commercial real estate, tenants are responsible for the main expenses on the property. In addition to their base rents: net taxes, net building expenses, and net standard area maintenance.

Security Advantage

Commercial real estate promises to provide security, the value of both the land and improvements on the property, including structures, landscaping, and infrastructure. Along with that, commercial properties have mobile home parks or apartment complexes, service industries, or storage and production (industrial warehouses).

Excellent appreciation value

Not like stocks investment, it doesn’t just allow much more than buying and selling based on the market, but with commercial real estate owners can invest in improvements on their commercial properties. An owner of commercial real estate can modernize the property, raise rents, redesign and restyle exterior and interior, or can even go for the zoning change.

Properties can be renovated and can cost less than new properties, and existing locations still increase in value along with more modern local developments.

High equity potential

Leveraging increases equity in commercial real estate. You can put down a small percentage of the purchase price on a particular property and go on to invest in more properties. Commercial real estate leveraging will let you enjoy a much higher return on investment than buying outright.

Commercial real estate leasing is quite easy and favorable for banks, and it approves quickly because of the higher likelihood of stable income flow.

 If you need any advice on commercial real estate? Horizon Resources Inc., provides high quality commercial real estate advisory to our clients, with expertise in commercial real estate properties, HOA management, commercial properties on sale/lease in San Diego County, and association management.

Our property managers help you in providing complete and adequate commercial property management service for your San Diego County commercial properties, which will maximize your income potential.

Explore our website: Horizon Resources Inc., or call us at (760) 692-5205.