Investing in this type of CRE could prove smart.
Investing in commercial real estate has many benefits; investing in the right things can allow you to reap rewards and increase your wealth. Investing in the right things, such as strip malls, can also give you a passive income. Who wouldn’t want that? If CRE interests you, here are the benefits of investing in strip malls.
What Is a Strip Mall?
If you are not familiar or would like to brush up on the definition, a strip mall is a long, one-story building with multiple outlets for businesses to set up shop. It is a row of connected business buildings that could range from public gathering places to restaurants to retail stores. According to Wikipedia, they are the most common in North America and Australia.
Why Invest in a Strip Mall?
Diversify the Portfolio
Investing in real estate in general is one of the best kinds of investments you can make. Real estate is a tangible asset that will always hold value of some kind. Over a long time, it is most likely to appreciate in value with minimal risk. Even if the property decreases in value at multiple points, it is most likely to appreciate overall. Investing in a strip mall could be a wise addition to your portfolio.
Low-Maintenance
Managing commercial property can be complex. In fact, it can be a full-time job. Thankfully, it is standard practice to hire a property management company like Clagett Enterprises to run matters for you. They will take care of the finances, the maintenance, tenant issues, and legal issues. They will get a cut of the passive income, but you will have a trusted group helping you keep everyone happy.
Stability with Long-Term Leases
Commercial tenants are more likely to have longer leases than residential rental tenants, which is why commercial property investments can be more stable, despite the fears about the decline in commercial property usage in general. Physical stores are still necessary, and their stability makes strip malls a great asset, in particular.
A Great Investment for Economically Prosperous Areas
The value of a commercial property will partly tie to the area’s economy. If the economy is declining, business will decrease. If it is prospering and projected to grow, then you can expect business to thrive in your strip mall.
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.