Making a move towards commercial real estate (CRE) investment is not only a wise choice but one that is gaining popularity. As you’ll discover when you keep reading, there are many good reasons for this.
Here are some key benefits to get you started on your research and planning toward CRE investments.
CRE Investing and its Diverse Benefits
Some of the many enticing reasons why more people are looking into commercial real estate investment are as follows:
Wealth Building Potential
Building wealth is not something you do by accident, it comes through intentional foresight and diligent effort. Commercial real estate is an alluring endeavor for this reason. The income-generating potential of commercial properties is often diverse and robust in nature. As opposed to residential real estate, CRE typically holds a higher value due to its facilitation of business purposes among the tenants. Additionally, commercial properties are more expansive and capable of leasing space to many tenants at once. Undoubtedly, this alone increases income stream potential.
Visibility and Accountability
Since most commercial real estate properties are located in view of high public traffic areas, this further incentivizes your professional tenants to maintain proper care of the property. It’s always nice to know the tenants leasing space are business-minded, professional, and less prone to causing damage. Because tenants are seeking engagement with the public for their business services and practices, it’s in their best interest that the exterior and interior of the environment is clean, orderly, and undamaged. All this is to say that commercial real estate investing is a safer bet when it comes to maintaining long-term infrastructural and outward integrity.
Less Prone to Emergency Response
As most commercial real estate properties have tenants that keep standard business hours, this reduces the likelihood of emergency phone calls at all hours. Again, tenants in your property locations are more likely to be responsible professionals who are diligent in checking safety measures are followed and that there isn’t any threat to the building before locking up each day or throughout their tenancy.
Logistical Economical Sense
Commercial real estate pricing tends to be more stable and predictable as opposed to residential real estate investments. Your potential tenants, such as business owners and industry professionals, are likely to be more rational and prudent in their financial decision-making, doing what makes sense for profitability rather than making impulsive decisions based on the market. Therefore the prudence of your prospective tenants only helps stabilize the overall operation and consistency you experience as an investor.
Leasing Requirements Reduce Anticipated Expenses
Triple net leases are common in CRE and what this means is that tenants hold more financial responsibility for expenses that cover taxes and maintenance. This translates to more money in your pocket and fewer responsibilities that come with other types of real estate investing or other investments in general.
Built-in Flexibility in Leasing Terms
Another bonus for commercial real estate investors is the flexibility often found in commercial leases. Flexible terms are appealing to the variety of different industries that may be leasing space in a CRE property. Investors can tailor lease agreements that more accurately align with their goals, as well as provide room for negotiation in areas of the leasing agreement where applicable. For example, medical professionals may seek modifications to assist with their medical practices and the requirements they need as health professionals in the space they lease.
Diverse CRE Property Investment Options
Investing in commercial real estate comes with a diverse amount of property options to choose from. You may wish to invest in office buildings, mixed-use buildings, factories, warehouses, etc. Diversifying your investment holdings helps improve your earning potential and the consistency in the stream of wealth your investment enables.
Plaza Companies is the Premier Choice of Commercial Real Estate
Plaza Companies is a full-service real estate firm specializing in the leasing, management, construction, and development of some of the most innovative commercial real estate projects in Arizona.
Plaza Companies is successfully competitive in the commercial real estate space while remaining compliant with all accessibility needs as a top priority along with all other legal obligations. Our firm specializes in staying connected and conscientious of all emerging trends and laws.
Contact us today to learn more about leasing the right space or anything else we offer!