There are many positive reasons to buy commercial property, but here are the biggest:
1. Income potential – The annual return on the purchase price of a CRE property is 6 to 12% higher than a 1 to 4% return in the residential real estate.
2. Longer lease terms – The longer a tenant is in place, the longer it provides a steady income stream for the owner.
3. Public eye – In retail investments tenants maintain their storefront, which has a direct effect on their business. When tenant and landlord interests become aligned it dramatically increases the value of the investment.
4. Limited hours of operation – Most of the time business hours for commercial real estate tenants overlap with and investors work day resulting in fewer incidents from after-hours activities.
5. Hands off financial ownership – In a triple net lease (NNN) a tenant is responsible for all commercial property expenses directly, resulting in minimal ownership responsibility.
Article source: https://svngll.com/want-to-buy-commercial-property-heres-how-to-evaluate-a-potential-investment/
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