If you are searching for a way to diversify your investment portfolio and have a stable source of passive income, commercial real estate has you covered. Even though owning a commercial property is a brilliant and profitable investment, you must be comfortable with the risks. When searching for a commercial property for investment, make sure to do your research and opt for the type of property that best fits you and your business needs. Here are three reasons why investing in commercial real estate is a decision you will not regret.
1. Potential for High Rental Income
Unlike residential properties, a commercial real estate property has many units and thus a higher number of tenants. This not only guarantees an excellent ROI (return on investment), but the long-term leases take the stress off your plate while keeping the vacancy rate low. In fact, commercial properties have an annual ROI between 6 to 12% depending on the current economy, location, and external factors. Some examples of high-in-demand properties include shopping centers, student housing, office buildings, and apartment complexes.
2. Properties with Triple Net Leases
One of the best things about owning a commercial real estate property is the triple net leases (NNN). According to the clause of the NNN, the tenants are responsible for paying the rent and all other types of property expenses, including taxes, maintenance, and insurance. Therefore, all you need to do is purchase the property, rent it out, and the tenant will take care of the rest.
3. Professional Relationships
Most commercial real estate investors are not your typical landlord but LLCs (Limited Liability Companies) that operate the property as a business. Furthermore, even the tenants are business owners, which means that the landlord and renters will have a business-to-business customer relationship, which will help in keeping interactions courteous and professional. Moreover, because businesses have limited hours of operation, you will not have to be available to sort out the tenant’s concerns at night.
Commercial Real Estate Investments In NY, DE, FL, MD, PA, NJ
Whether you want to invest in a shopping center, multi-family residential property, office building, or any other kind of commercial real estate property, Milbrook Properties Ltd can help you out. In our 100 years of experience, we have helped in managing and maintaining 3.4 million square feet of retail space and more than 1500 residential units.
With a commitment to making commercial real estate investing hassle and stress-free, we aim to provide the best property management services in New York City. We can help you with all your commercial real estate needs, including leasing, acquisition, legal, and property maintenance and management. Contact us to find an investment property today!