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Commercial Real Estate Should You Invest?

By on April 29, 2017

Business space for lease

Did you know that 89% of American investors are interested in putting their money into real estate? Real estate is a great sector to invest in right now. In fact, lots of people invest in real estate with the intent of it one day becoming their primary means of income. But of course, real estate is a broad field, and there are many responsibilities that come with investing in real estate. Would you rather renovate and sell real estate, for example? Or do your interests lie in leasing your real estate out to tenants? For that matter, many investors decide to move into commercial real estate or residential real estate — but not both. It’s important to discuss what you want to do with mentors in the real estate industry before taking your first step. But there are many different options available for those who want to rent out commercial office space, or perhaps look into a warehouse space for rent. These would fall under the umbrella of commercial real estate, and there will always be a high demand for that in particular. Below, we’ll look into why it may be a better idea to look for retail space and commercial office spaces to rent out.

Why Do Tenants Want To Rent Out Commercial Office Space Rather Than Buy It?

You may be wondering why it’s a better idea to invest in commercial office space, retail space, and warehouse space for lease rather than residential properties. While the reasons are manifold, one is that people are more likely to buy homes outright than rent them — in contrast to those who need commercial spaces. Commercial spaces are usually viewed as better options to rent than buy — especially for small business owners who are just starting out. One of the reasons why small business owners don’t want to buy business space outright is that they can’t be sure that their businesses will be successful in the long term. Therefore, a permanent investment could end up being a waste of money. Renting a space is a much safer bet for them — and of course, the landlords who rent to such small business owners end up benefiting as well. Most small business owners also enjoy other advantages of renting, such as having property managers on hand to deal with some of the practical aspects of managing an office space or warehouse. Certainly, this is one thing to keep in mind when deciding whether or not to invest in a commercial space — but it can be handled with the help of a good property management company.

Is Investing In Commercial Real Estate A Safe Bet?

There is always a risk that comes with investing in real estate of any kind — you have to be smart about the kind of properties you buy, and careful about the tenants that you take on. But again, if you make intelligent decisions, you can reap great rewards. According to a recent study, 96% of those who have invested in real estate felt that their investments helped them financially. For that matter, 83% of parents who invested in real estate said that they would co-manage a property with their children, and use it to fund college tuition. Commercial real estate in particular almost always comes with potential tenants — people need office space, warehouse space, and retail space for practical reasons. They aren’t just choosing such properties based on taste, but based on what they need.

How Can I Promote Commercial Real Estate To Potential Tenants?

Potential tenants often take advice — and listing tips — from real estate agents. Therefore, it’s a good idea to enlist the help of the best possible real estate agents, and for that matter take their advice on how to promote your real estate. Real estate is often promoted online in this day and age, where it can reach the widest possible audience. Circulating advertisements about your real estate online is the best way to find good tenants.

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