Commercial real estate: A profitable, secure, and diverse investment

Commercial real estate, also called tertiary real estate or CRE (Commercial Real Estate in English), is attracting more and more investors looking for profitable and secure investments. This asset class includes all real estate owned by professional actors who are not the occupants and who derive income from it. In this blog, you will explore the different facets of commercial real estate, the types of properties involved, and the advantages for investors. 

 

What is commercial real estate?

Commercial real estate is defined as all property owned by professional players who are not the occupants and who derive income from it. The property concerned can take various forms, such as offices, commercial premises, logistics warehouses, car parks, hotels, restaurants, business premises, and residential premises rented and occupied by companies.

The different types of commercial property

The top commercial real estate companies in New Jersey offer several categories of property, including: 

• The offices
• Commercial premises
• Logistics warehouses
• The car parks 
• Hotels and restaurants
• Professional premises  
• Residential premises held by limited companies (corporate housing)  
• Production spaces  
• Leisure spaces (gyms, amusement parks, event venues, etc.)

  How does investing in commercial real estate ensure profitability, security, and diversification?

  Commercial real estate has several advantages for investors, among whom profitability, security, and diversification capabilities are discussed below:

  High profitability

  Commercial real estate offers significantly higher profitability than residential real estate, with yields observed between 5 and 8% net per year. The amount of rent is not capped and depends mainly on the value of the location and the profitability of the premises. By choosing the right tenants, it is possible to achieve high profitability.

  Increased security

  Investing in Commercial real estate Yonkers New York, provides greater security for the landlord due to the nature of the lease contract that binds it to the tenant. The commercial lease, which is generally of long duration (at least 9 years), offers great financial stability to the lessor. In addition, in the event of non-payment, recourse is simplified, and eviction procedures are quicker than in residential real estate.

  Diversification of income sources

  Investing in commercial real estate allows investors to diversify their income sources. By having tenants from various industries and sectors, investors can spread the risk and reduce their dependence on a single tenant or property. This diversification can provide more stability and resilience to the investment portfolio, as the performance of one tenant or property may not have a significant impact on the overall income generated.