Are you looking for an investment opportunity that is able to generate a steady passive income? Commercial property investment is something that you should consider. If you do your research and plan ahead, you can earn huge benefits. Here at Landwin Commercial Real Estate, we have the knowledge and experience needed to help you make the right decisions.
Owning commercial properties can be a very lucrative investment. The sole purpose of owning a commercial property is to make a profit. There are many types of commercial properties, such as apartment buildings, office buildings, and shopping centers. Each type is unique in its own way, but they can all generate money for you.
Ways to Make Money From a Commercial Property
When deciding if you are ready to purchase a commercial property as an investment, it is important to consider the expense. These properties are usually more expensive to purchase, build, and maintain than residential properties. However, owning a commercial real estate property can provide you with higher dividends compared to residential properties.
Charge Rent: No matter what type of commercial building you own, there is a tenant that wants to lease the space. Depending on the arrangements and management needs, the leases will vary but should always be profitable to you.
Apartment buildings: Apartment buildings are multi-family dwellings. Tenants are usually individuals or families. Leases are either short term or long term and are usually not longer than one year. There are many instances where the lease can also be month by month. These types of commercial properties have more tenants, leases, and payments to handle. They include apartment complexes, high-rise condos, and multifamily units.
Office Buildings: Office buildings are the most common type of commercial real estate. They usually have a lease that is in the 5- to 10-year range. These types of buildings are great for startup companies as well as law firms.
Industrial Warehouses: Warehouses are generally occupied by manufacturing and distribution companies. They have a suitable height as well as the availability of docking. They are typically not located in residential areas or near retail properties.
Retail Locations: Retail buildings are typically located in urban areas that see a lot of traffic. They include retail centers, strip malls, banks, and restaurants.
Advertising: An often overlooked way to monetize from a commercial property investment is advertising. You have the land available, so you might as well sell access to it. Billboard and sign companies will pay you to use your property. You can also sell print advertising for services that your tenants provide as well as outside advertisers.
Appreciation of Property Value
There are a number of reasons that your property value can increase. You can make improvements and make the property more appealing, or maybe the surrounding area will experience large growth. There are many commercial property investors that are not in the business to make money off of rental income. Their goal is to purchase the property, make improvements, and flip it for profit. They are able to do this over and over and make a substantial profit.
Commercial Properties Can Be a Great Investment
The most common reason that an investor invests in commercial resale estate properties is to generate a passive income. In the scheme of things, real estate is a scarce asset. There is only so much land and more isn’t being made. If you own a commercial property in an area that is in high demand, there is a good chance that you will have tenants fighting for the property. In turn, they will be willing to pay higher rent. Also, potential buyers will be more apt to pay more to take ownership of the property.
If you are interested in investing in commercial properties, we are here to help you make the right decisions. There are many different factors that you need to consider before purchasing a property. We are experienced, dedicated, and we will deliver superior care and results.
Contact Us Today for More Information
We have offices in Encino and Century City, CA, and we have invested in properties from Florida to Alaska. Contact us today to learn more about commercial property investment. You can reach our Landwin Commercial Real Estate office directly at 818-783-4343.