Commercial Real Estate Investment Opportunities

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Commercial Real Estate Investment Properties

The BIGGEST Opportunities in Commercial Real Estate Right Now

Commercial real estate is a phenomenal way to invest for the long term. Finding an investment property and developing an investment property are often used by individuals to diversify their wealth and build long-term solutions to make their money work for them. Investment properties are not the easiest to find, but using an expert in the market will enable you to find and locate the best investment properties. Investment properties can be properties in distress or fully developed, with the intention of earning a return on the property either through rental income or the future resale of the property, often both.

Positive Reasons To Invest In Commercial Property

Here are some of the pros of buying commercial real estate over residential property.

Income potential. The best reason to invest in commercial over residential rentals is the earning potential. Commercial properties typically have an annual return off the purchase price between 6% and 12%, depending on the area, current economy, and external factors . That’s a much higher range than ordinarily exists for single family home properties .

Professional relationships. Small business owners tend to take pride in their businesses and want to protect their livelihood. Owners of commercial properties are usually not individuals, but LLCs, and operate the property as a business. As such, the landlord and tenant have more of a business-to-business customer relationship, which helps keep interactions professional and courteous.

Public eye on the property. Retail tenants have a vested interest in maintaining their store and storefront, because if they don’t, it will affect their business. As a result, commercial tenants and property owner interests are aligned, which helps the owner maintain and improve the quality of the property, and ultimately, the value of their investment.

Multiple Streams Of Cash Flow

Commercial leases provide a relatively consistent and reliable stream of rental income. And the properties also generally provide multiple streams of income.

For example, you can charge for parking spaces separate from leased office space, for example. You can also provide vending machines and a workout room in office buildings. And you can install coin-operated washing machines in apartment buildings. Often, tenants will pay operating expenses, real estate taxes, and property insurance in addition to the monthly rent. This is known as a triple net lease. It is an industry standard in certain types of commercial real estate.

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Need For Efficient Commercial Real Estate Property Management:

CRE property management companies perform a variety of tasks for their clients, including analysis of the portfolio, forecast of the market, advice for investment, implementing investing strategies, and analysis of performance.At Assetmonk we assist our investors with

  • Prioritizing their protection and benefits in every aspect
  • Providing relevant and detailed information on various choices of investment
  • Provide a smooth and transparent investment process for the asset matching investment objective
  • We look out for options and take steps to maximize the net ROIs
  • With the help of a dashboard document vault and tools for better monitoring, we track the growth of investment for our investors
  • Our assessment team supports the asset cycle of our investors from start to finish

For our stakeholders, we, at Assetmonk take the following care:

  • We process every transaction and dealings with full integrity
  • Our processes and tools are transparent throughout the system
  • We exercise empathy towards our stakeholder while achieving their rightful objectives
  • We try to achieve excellence in every pursuit of ours and strive hard not to settle for anything less than the best.

The 5 Best Commercial Real Estate Investment Opportunities Amid The Pandemic

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This is what the data says

The most successful real estate investors know that gut instinct alone is insufficient to identify opportunities. They base decisions on data and statistical analysis. But knowing what data to evaluate, and how, has become extremely challenging as the coronavirus pandemic continues to disrupt all commercial real estate sectors. Some asset classes that investors considered safe in January, such as Manhattan office space and housing for college students, are now some of the most risky.

There are a myriad ways consumers have had their personal and work lives upended and each one represents an investment opportunity around commercial real estate. My firm, 7Park Data, collects and analyzes multiple data sources, including income and payroll data, job posts, firmographics, labor data, permitting, and construction data. We use this to predict supply and demand across all sectors in local markets nationwide and provide valuable insights to the property industry. Here are five asset classes that we have identified that we think investors should consider over the next 18 months.

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How To Get Started In Commercial Real Estate Investing

CREs are usually leased to tenants for operation of their businesses. CRE includes tenants of all kinds like space for offices, banks, malls, restaurants, and convenience stores or supermarkets. It has become an appealing investment option because of its coherent returns, pliable source of income, and growth prospects.

Though investing in CRE is attractive, there are some common hiccups, mistakes, and risks involved. Therefore, it is important to you know how to get started and what should you look out for before investing in CRE especially for the first timers.

Breaking Free From Parallel Earnings:

Earning from any particular source of investment may tend to become positive or negative if there is some fluctuation in the financial markets. Whereas, investment in CRE is not influenced by the performance of any other source of investment. Investment in CRE has no relation whatsoever to any changes in the stock or bond markets.

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Finding Investment Opportunities In Europes Commercial Real Estate

Find out why interest is growing in investing in new areas of commercial real estate in Europe.

Demand for office space in Europe is seeing some complex changes. New ways of working coupled with demand for greener buildings are influencing the views of occupiers and investors.

The focus on environmental, social and governance criteria is sparking debate over the extent to which retrofitting existing structures is preferable to building sustainable structures from scratch, while remote and hybrid work patterns have stoked a debate over the future of the office. Furthermore, offices no longer dominate conversations on real estate investments in the way they did before the COVID-19 pandemic and its unprecedented impact on global supply chains, with assets such as life science labs and logistics warehouses coming to the fore.

Regular And Consistent Returns:

Where the Opportunities in Commercial Real Estate Market Are and Challenges for Emerging Developers

The lease for any commercial property is for long term, a minimum of five years. The owner of the commercial property has an assurance of consistency of returns. Also, lease agreements come with a clause of yearly appreciation of the rental value irrespective of market value making it more attractive.

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How To Get Started With Commercial Property Investing

Whether youre new to investing or know a thing or two, theres a lot to discover.

One thing youll have heard is the importance of a diverse portfolio. Having a wide range of investments can help manage the ups and downs of individual asset classes.

Investing in commercial property – directly or via listed real estate investment trusts – can complement other asset classes in an investment portfolio. At Charter Hall, creating and managing these types of investments is our speciality.

Direct property can provide the potential for capital growth over the long term, benefits associated with a diversified portfolio, access to regular income and returns that have a low correlation to listed investments.

Investments in listed real estate trusts also offer the potential for capital growth and diversification benefits. As they can be traded on a stock exchange, these types of investments are subject to market volatility, however they provide the benefit of liquidity.

All information on this page is of a general nature only. For specific advice relating to your needs, please speak with a financial adviser.

What Are The 4 Types Of Real Estate

Generally, commercial real estate is a term that includes several kinds of properties. As a rule, commercial real rate properties are used for business purposes. These commercial properties can be categorized into four types:

  • Multi-family apartment complexes and condos

Special purpose commercial real estate properties are also included in these types of investments. These special purpose properties include bowling alleys, daycares, hotels, health care centers, and churches. You can purchase commercial real estate properties for additional cash flow. These properties provide the investor with passive income.

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Commercial Mortgages Provide Attractive Yields

Commercial mortgages have historically delivered a spread premium relative to public corporate bonds with similar risk profiles . Since 2000, fixed rate U.S. commercial mortgages originated by U.S. life insurance companies provided, on average, a 93 basis point spread premium over single-A public corporate bonds.9 There are several reasons for this phenomenon.

Higher costs associated with originating and servicing loans can partially explain the spread premium commercial mortgages provide relative to similar term and risk public corporate bonds. Since these direct commercial mortgages are not publicly traded, investors may also demand a spread premium to compensate for a lack of liquidity. This liquidity premium can vary materially by investor and mortgage features including property type and loan size. The importance of liquidity can vary by investor type and be significantly influenced by the nature of the liabilities being matched, and the overall role that commercial mortgage investments play in the investors portfolio. We believe the premium the asset class offers today more than compensates for illiquidity and servicing costs, and represents an attractive relative value opportunity.

Avoid Problems With Tenants

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Fortunately, there are ways to invest in commercial real estate without having to shoulder the burden of being a landlord. Real estate investment trusts have been an investment option for some time, and now real estate investment funds like Saint Investment Group are improving on this model with more in-depth reporting, better returns, and greater transparency. If youd like to learn more, or have any questions, feel free to reach out to us!

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How To Pick The Right Commercial Property Reit

REITs will often specialize in a certain product type and/or geography . Some are long-term buy-and-hold investors, whereas others have a shorter investment horizon. Whatever the case may be, it is important for investors to evaluate the REITs business strategy to ensure it is aligned with their own goals and priorities

There are a few other things to look for when selecting the right commercial property REIT:

  • Management: Evaluate the REITs management experience and track record. Look to see how the REIT has performed across multiple real estate cycles. Be wary of those that are newly established and have only been around during the most recent market upswing. How a REIT performed during previous downturns is telling.
  • Diversification: Investors generally have different views on the importance of REIT diversification. Some will argue that a lack of diversification is a good thingthe REIT sticks to what it knows best. Others, meanwhile, will urge investing in a REIT that has more diversification, either across product types or in different geographies. This hedges against risk.
  • Dividend Yield: Just as youd look at how a stock has performed over time, do the same with REITs. Look at the REITs dividend yield as well as dividend history. How fast have the dividends been growing over time? See how this compares to alternative investment opportunities.

The Many Benefits Of Commercial Real Estate Investing

Investing in commercial real estate can be very rewarding, both personally and financially. For many, the objective of investing in commercial real estate is for future wealth and security others utilize it for tax benefits and investment portfolio diversification.

A commercial redeveloper can also take advantage of the following benefits:

Commercial real estate investing offers investors an array of opportunities and advantages that other investment strategies do not. Once the benefits of commercial real estate investing are recognized, the next step is to dive in. Read the following to receive tips on how to get started in commercial real estate.

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Electrifying Commercial Real Estate

While America now has 1.6 million electric vehicles, public charging stations have seriously lagged behindonly 40,000 have been registered with the U.S. Department of Energy.

This is a fraction compared to the roughly 150,000 gas stations in the U.Sand even a steeper fraction compared to the ambitious 500,000 charging station target set by the Biden administration. This has led to pent up demand, and charging infrastructure investments are already expected to exceed $13 billion over the next 5 years.

Why does this matter to commercial real estate managers? Because while charging stations ostensibly deliver power to electric vehicles, they also deliver customers to retail locations.

In other words, drivers waiting to recharge their vehicles are now captive, on-location customersprecisely what physical shopping centers have struggled to attract.

How Do I Invest In Commercial Property

$250,000 Wholesaling Commercial Real Estate Plus an Opportunity to Partner on CRE Deals Nationwide

There are three typical ways individuals in Australia can invest in commercial property:

  • Investing in a direct property fund: Here, individuals contact a fund manager such as Charter Hall about their funds open to investment, and choose one that is suitable.
  • Investing in A-REITs: Here, individuals contact a stockbroker or online broking facility and identify listed commercial property trusts they wish to invest in. There are also managed funds that invest in A-REITs.
  • Purchasing your own asset: Be it in your own name or through your SMSF, you can purchase commercial property in a similar way to residential property. You will put down a deposit on a commercial property loan and use that to purchase a piece of real estate. Then, you manage it yourself or use a specialist property manager.
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    Businesses For Sale: Commercial Property And Investment Opportunities

    If you are interested in buying or selling a retail store, hospitality business, commercial facility, investment property or development land, this website is for you. On this site, United Country Real Estate features small businesses for sale and investment opportunities throughout the nation, from coast to coast.

    United Countrys Small Business Network offers an exclusive and diverse selection of listings for all types of business operations. Whether its a popular bar or restaurant vacant office building commercial land for retail development hotel / motel or another related property, well help you sell it, or locate it as a great investment.

    United Country supports owners of commercial and investment properties with a wide range of creative marketing and advertising programs. Its a unique approach that has given us an advantage over the competition for more than 95 years.

    What Is Commercial Real Estate Investing

    A commercial real estate investment is a property leased for retail or business purposes. In some cases, the investment includes the development or purchase of properties that have been designed to house commercial tenants. Unlike real estate investing, a commercial real estate investor will create leases and collect rent from businesses rather than residential tenants.

    Commercial real estate investing also includes raw land that you can use for commercial property developments. Several types of commercial properties can be added to an investment portfolio.

    Related: Commercial Real Estate Transactions Guide

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    The Hidden Investment Opportunity In Electric Vehicles Commercial Real Estate

    A Nissan Leaf a full electric plug-in vehicle or EVcharges next to a shopping mall at a dedicated … EV parking space.

    NurPhoto via Getty Images

    If the future of cars is to be electric, the 2020s will be the decade that turns the tide.

    Last year, demand for electric vehicles led to a meteoric rise in Teslas stock price, turning the electric vehicle pioneer from a bankruptcy candidate into the most valuable car manufacturer in the world. Domestically, over 18 million electric vehicles are expected to hit the road over the next 10 years, boosted by a notably pro-electric Biden administration.

    Some may look at this growth in EVs as a missed investment opportunity. However for those in commercial real estate, the true opportunity has just begun: the race for charging stations.

    How To Begin Investing In Commercial Property

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    Before the 1960s, the prospects for most to invest in commercial property were somewhat limited, and usually required the direct purchase of real estate.

    What is sometimes called fractional ownership, or real estate syndications did not really take off until the postwar era, especially in the 1950s. Many of the old-school real estate syndications were worthy but did require heavy upfront fees to organize.

    The year 1960 was a banner year in that enabling legislation passed the US Congress allowing real estate investment trusts , which brought the benefits of commercial property to nearly all retail investors and high net-worth individuals. The foundation for the modern REIT was expanded with the Tax Reform Act of 1986, when the trusts were given the right to operate and manage property, rather than simply owning or financing it.

    Perhaps the most exciting and third level of fractional real estate ownership opened in 2012, with the passage of the Jumpstart Our Business Startups Act, or the JOBS Act, a law intended to encourage funding of small businesses by easing certain securities-industry rules and equity-raising rules.

    The short story is that the JOBS Act paved the way for property syndicators to legally solicit both large and small investors broadly, and very efficiently online and by advertisingand thus crowdfunded real estate was born.

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