Investing in commercial real estate- A safer and profitable action

The vitality of commercial real estate appears to be an option that should not be overlooked in the face of residential real estate, which is often perceived as less risky but not always more advantageous.

A safe investment

Less known to the general public, investing in commercial premises offers you financial and rental stability :

• Financial stability because the commercial premises are a source of turnover for the occupant, whereas, for the tenant of a dwelling, it is, above all, a cost. Therefore, the payment of rents is more assured with a commercial tenant since he derives profits from the premises used.
• Rental stability because the rotation of tenants is less with commercial premises, the latter having particular importance for the sign which is established there. Indeed, the merchant is often attached to his location because of the presence of his customers. For you, having long-term tenants is an advantage; it significantly reduces the costs of managing the property, and you waste less time managing it.

Thanks to commercial real estate, you avoid the vagaries of housing rental management. The latter is indeed often forced to problems of unpaid rents and/or turnover of tenants. There are fewer constraints, therefore but also interesting financial advantages.

A better return and more flexibility than in residential real estate

• Better performance- Up to twice as profitable, commercial real estate can offer profitability ranging from 5 to 7% against only 2 to 4% in residential rental real estate.
• More flexibility- The flexibility of the commercial lease is greater, and appeals are facilitated in the event of unpaid rent. The latter is already much less frequent than in residential real estate. Regarding the commercial lease, you can freely define certain conditions and relieve yourself of certain expenses, particularly in major work and property taxes.

In order to benefit from the advantages of this type of investment and if you wish to make a choice to invest in your own walls, rely on top commercial real estatecompanies in Connecticut and explore the exciting offers on commercial real estate.