Investing in commercial real estate can be very rewarding. Most successful real estate owners are proactive with maintenance issues and the overall upkeep of various properties. With the right amount of professional help, capital, and time invested, you too can become a successful commercial real estate owner. Properties can range from anywhere to warehouses, retail buildings, and office spaces. Continue reading to learn more about the premium benefits of commercial ownership.
Investing in commercial real estate can be rewarding.
Potential Income from Commercial Real Estate
The commercial real estate’s earning potential is more lucrative than residential real estate. The annual returns on the purchase price typically range anywhere from six to 12 percent. Residential properties like single-family homes only return anywhere from one to four percent. Commercial leases typically offer consistent income that is usually higher than dividend yields.
Tax Benefits Are Plentiful
The tax codes of the United States are very advantageous for commercial business owners. Interest from your commercial mortgage and deductions because of depreciation can save some income revenue. Tax benefits are just a few reasons to consider purchasing commercial real estate. You can write off maintenance costs and renovations on your tax return.
Protection Against Inflation
Costs of goods and services throughout the United States have risen since the Covid-19 Pandemic. Gas prices have also grown in every state across the country. Rental prices have also increased, a considerable benefit for commercial real estate owners.
Less Hassle With Commercial Tenants
With residential real estate, you might find it more challenging to deal with tenants who either don’t pay rent or are rarely on time. On the other hand, commercial businesses have established track records of credit and typically sign multi-year leases instead of monthly or yearly residential leases.
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.