Quick Contact
×

We will soon get back to you

Lesser-Known Benefits of Commercial Real Estate Investment That No One Will Tell You

Lesser-Known Benefits of Commercial Real Estate Investment That No One Will Tell You

Commercial real estate investing is rising every day because people are realizing that it offers more security and profit than other forms of investment. Moreover, commercial real estate continues to perform for you even if the economy slows down, unlike residential property. On the other hand, commercial property value increases when the economy becomes strong and offers you a steady income source.

Nevertheless, if you are starting out, given below is a list of the advantages one can enjoy from successful commercial property investing.

Amazing Returns

One of the significant reasons why people are attracted to commercial real estate is its amazing and reliable returns in both income and capital growth. However, the experts always advise aiming for a quick gain. However, with time, one should accomplish a considerable return continuously above inflation.

Stability of Income

A significant thing about commercial real estate investment is that the returns are not only high, but they are also secure too. Simultaneously, commercial property leases are usually around 3 to 10 years, unlike residential property’s short-term leases. Today we know that the hottest real estate market is Arizona and it is increasingly high even in the pandemic situation.

Lower Risk

Comprehensively, commercial property investments usually carry a lesser amount of risk than a residential property and the stock market. When the property is situated in a busy marketplace, it always has high demand and rarely remains vacant.

Exposure to Various Sectors

It needs to be understood that the industrial and the retail property directly correlate with the economy as retail property depends on customer spending trends. At the same time, office buildings have high demand throughout the year when they are situated at a city where people from various sectors come to work.

Tax Benefits

One can also find that commercial real estate property offers a considerable tax advantage. Depreciation allowances on plant equipment are very important, especially on items like carpets, air conditioning and others. However, that is just part of the advantage because commercial real estate also provides handy building allowances at the same time.

Hedging Against Inflation

In the past, commercial real estate was considered a fantastic hedge against inflation. Moreover, the commercial property actually has an amazing record of leaving behind inflation for a long duration.

Investment Control

Another great advantage of commercial property is that one enjoys a great degree of control over the investment. Particular areas like upgrading, renovations, change of the utilization of the property, redevelopment, the type of tenant, and disposal.

The Power to Add Value

The different ways to increase and add value to a property would include renovation, subdividing, upgradation, enlarging, restructuring the lease and improving the appearance.

In all, these are just a few of the many other benefits of commercial real estate investing. It would be best to get a commercial real estate investment advisor to invest in the right properties to enjoy all the discussed benefits.


Disclaimer

This Property Summary has been prepared solely for, and is being delivered on a confidential basis to, persons considering a possible business relationship with the Company (defined in the offering package). This Presentation is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instrument of the Company. No offer of securities shall be made except by means of a private placement memorandum meeting the requirements of the Securities Act of 1933, as amended, and applicable regulations of jurisdiction in which such an offer may be made. Any reproduction of this Property Summary, in whole or in part, or the disclosure of its contents, without the prior written consent of the Company, is prohibited. WealthBCI makes no representations, express or implied, regarding the accuracy or completeness of this information, and the reader accepts all risks in relying on the above information for any purpose whatsoever. Certain information presented or relied upon in this presentation has been obtained from third party sources believed to be reliable, however, we do not guarantee the accuracy, completeness or fairness of the information presented. These materials are not intended to provide, and should not be relied upon for investment, accounting, legal or tax advice. Actual transactions described herein are for illustrative purposes only, are presented as of underwriting and are not indicative of actual performance, and were selected based on objective, non-performance factors such as asset-type, geography or transaction date, among others. Before making an investment decision with respect to any investment, investors are advised to carefully read the related final documentation and offering memorandum documents. No offer of securities shall be made except by means of a private placement memorandum meeting the requirements of the Securities Act of 1933, as amended, and applicable regulations of jurisdiction in which such an offer may be made. Any reproduction of this Property Summary, in whole or in part, or the disclosure of its contents, without the prior written consent of the Company, is prohibited.