Reap the benefits of investing in commercial properties.
Investing in commercial real estate can be a great way to generate passive income and pursue an entrepreneurial path. While there may be new terminology and skills to learn, just like with any other profession, managing and growing your investment can become more manageable once you understand the basics. Commercial property can include various types, so let’s take a closer look at its many benefits.
Higher Income
Investing in commercial properties can result in higher annual profits compared to residential properties. Depending on the location, a commercial building can provide an annual return of over 10 percent of the purchase price. Additionally, commercial tenants usually sign longer lease agreements, which can lead to a more reliable source of income.
Professional Relationships
Tenants and investors treat commercial properties as businesses. This means that they are more likely to maintain a professional and courteous relationship with the property owner. Both parties have a vested interest in the building’s success and are, therefore, more likely to work together to keep the property in good condition, especially compared to residential situations. This collaboration helps to maintain the property’s reputation in the public eye.
Objective Pricing
Unlike commercial investing, which is more objective in pricing, residential investing can be influenced by emotions and not actual value. The pricing of real estate is affected by several factors. Consider investing in commercial real estate if you notice that commercial properties are priced more reasonably than local residential properties.
Triple Net Leases
In a triple-net lease, the property owner pays the mortgage and structural repairs, such as roof fixing. However, the tenant is responsible for covering the maintenance costs. This type of lease is preferred by some businesses that want to maintain their brand image and choose to manage the costs of maintaining the property themselves.
Limited Business Hours
Finally, investing in commercial property brings the benefit of limited business hours. You will not have to deal with emergency calls in the middle of the night about issues like lost keys or clogged toilets. As businesses typically occupy the units, you usually receive calls only during business hours. Moreover, you can set up a system to alert the relevant authorities during an emergency instead of handling the situation yourself.
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, 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, Twitter, and Pinterest.