Tired of the volatile stock market or low-yield savings accounts? It might be time to think bigger, like commercial property investments bigger.
In this guide, we'll go over why commercial properties could be the investment opportunity you've been waiting for, the variety of property types to consider, and the key factors that can make or break your investment.
Ready to dig in?
Why Consider Commercial Property Investments?
Investing in commercial properties can offer you substantial returns and potentially set you on the path to financial freedom. Let's dive into the details, including the returns you might expect and the types of properties available to you.
ROI and Financial Freedom
We all dream of financial freedom, and commercial properties can be the avenue that gets us there. The returns are often higher than residential properties, and the tenants usually stick around longer.
Types of Properties
It's not just office spaces and retail outlets; the realm of commercial property investments is vast. From hotels to storage units, the opportunities are practically endless.
Types of Commercial Properties
When it comes to choosing a property type, you have several options, each with its own set of advantages and disadvantages. Let's explore three main categories: office buildings, retail spaces, and warehouses.
Office Buildings
Class A, B, or C-each type of office space serves a different kind of business. Depending on the class, you can expect different levels of income and tenant stability.
Retail Spaces
Shopping centers, strip malls, or standalone stores-each type offers varied income potential. The right tenant mix can greatly influence your success.
Warehouses
Warehouses may lack glamour, but they're essential to ecommerce and logistics. With the rise of online shopping, these spaces are becoming increasingly lucrative.
Key Considerations
Before you dive headfirst into your next investment, there are several important factors you'll need to consider. These range from the risks involved to whether or not you should hire a property management company.
Investment Property Risks
Every investment comes with its own set of risks. Make sure to get your property inspected and review the local market trends.
Property Management
Think you can manage the property yourself? Even if you can, should you? Property management companies can handle everything from maintenance to tenant complaints.
Navigating the Maze of Commercial Buildings
Once you're invested, the real work begins. This includes everything from understanding zoning laws to budgeting for long-term expenses.
Zoning Laws
You must ensure that your commercial property complies with local zoning laws. A failure to do so can result in hefty fines or even legal action.
Financial Aspects
Be prepared for not only the initial cost of the property but also ongoing expenses. These can include insurance, maintenance, and potential renovation.
Commercial Real Estate Partners
Investing alone can be overwhelming. Having a partner or being part of an investment group can provide added security and resources.
Ready To Start Your Property Investment Journey?
Is the commercial property investments game for you? It's a question only you can answer, but we've laid down the facts. These investments come with promising returns but also demand attention to detail and due diligence.
Still interested? Your next big investment opportunity might just be around the corner, so don't hesitate to get in touch with us at PMI St Louis, we'd love to help.
