If you are interested in investing in commercial real estate in your area, there may be a number of choices including retail stores, mini mall blocks, and warehouses. One of the best types of commercial real estate that you should first look at is commercial office buildings. If you want to get commercial real estate financing through traditional means such as a loan, you will likely have an easier time with the office building. Here are some reasons why office buildings are some of the best commercial investments.
You can secure more than one contract
If you own a warehouse or a single commercial building, you can only have one client at a time. If the tenant-landlord relationship goes sour or the lease ends, you will have to do through the costly process of advertising and vetting a brand new tenant. If your building sits empty while you are looking for a new tenant, you might have to deal with paying the mortgage on the building without earning any income from your investment. With an office building, you will have several rooms for suites. This will allow you to find several clients for leases at once. If one contract ends, you still have money coming in monthly from the investment.
Easily invest with friends.
If you want a commercial investment but you do not have enough money up front, investing in a building with friends can be fun and lucrative. A group if you can come together to put up the deposit, plus qualify for the mortgage all together instead of separately. Working with a group means that everyone can share the responsibility of finding new leases, sharing in the profits, and taking a group hit on the losses. Investing with friends may also mean you can purchase a bigger office building with more rooms.
Upgraded neighborhoods bring more money
Live-work centers inside of a city are on the rise and are more sought after than ever. If you purchase a commercial office building in a neighborhood that is upgrading, you can get a fantastic deal, while enjoying real estate appreciation each year. If you keep your offices as upgraded as the condominiums and other buildings around yours, you will be able to continuously raise your prices and possibly attract major tenants. When you are looking for commercial real estate do not neglect the up and coming neighborhoods with condo spaces and new home builds nearby. For more information about investing in real estate, contact a business such as NAI Norris Beggs & Simpson.