Are you surprised by these reasons to invest in commercial property?
Real estate comes with risks and costs; while natural disasters, economic downturns, and changing demands can threaten your real estate, it is also a way to stabilize and grow your wealth. You have the option to invest in different kinds of property, including commercial property. What makes commercial property a surprisingly great investment?
Why Is Commercial Property a Good Investment?
Potential for Higher Passive Income
Commercial property, such as office, retail, and healthcare centers, can offer investors a higher passive income than residential rental properties. Commercial real estate is generally more expensive than residential real estate, but you can also charge more for people to rent it out.
More Stability Than Residential Property
Businesses renting out a commercial space will want to be there as long as possible, except in the event that they outgrow the space or need to change locations. In contrast, people renting an apartment will stay an average of three years. Commercial properties are a bigger investment, but they offer more tenant stability.
Less Competition Than Residential Property
Because residential real estate is more accessible, there is more competition to purchase properties and find tenants. Commercial real estate has less competition, which means you are less likely to have to compete with other investors to get started.
Potential for Long-Term Growth
Long-term growth is more likely when you make large, stable investments. You will most likely need to hold onto the property for many years before you get a significant return on investment, but the likelihood of getting a positive ROI is greater.
Being Wise in Commercial Property Investing
It takes wisdom to invest in commercial property successfully. Just because you invest and rent out commercial property doesn’t mean that you will automatically increase your wealth. It is best to understand the local supply and demand. Some properties will be more attractive and successful than others due to location, demand, and other factors.
Clagett Enterprises is here to be your commercial property realtor in Frederick, MD, able to offer sound advice in your investing journey. Should you need commercial property management help, we offer this service, too. Contact us today for more information!
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.