5 benefits of investing in Commercial Real Estate
Posted by Techyscouts | Posted on 05/10/2022
Are you interested in real estate in the Los Angeles area?
Mike Millea is a professional real estate broker in the Los Angeles area. With a long history of legal and realtor experience, Mike brings all of his knowledge and expertise to every real estate transaction that comes his way. For over 30 years, he has assisted in the buying and selling of many properties, including residential, trust properties, and of course, commercial real estate.
What is commercial real estate?
Commercial real estate, quite simply, is a piece of land or a building that is purchased with the intent of using it for a business purpose. Someone might purchase a commercial entity for their business use or as an investment, with plans to rent the space to another business.
What are the benefits of investing in commercial real estate?
So, why would someone want to invest in commercial real estate? Oh, let us count the ways!
- Dollar, Dollar Bills, Ya’ll – The top reason one might invest in a commercial real estate opportunity is for income. In almost every instance, a commercial purchase is going to be a higher return on investment than a residential investment.
- Convenience – If you are renting a location to a business instead of a home to a family, certain conveniences are allowed. For example, a business emergency requiring landlord assistance will likely be during business hours instead of potentially all hours of the night. In addition, tenants are more prone to keep up on maintenance and care of the property, as they are keen to keep their business looking professional.
- Taxes – Tax incentives are often offered to owners of commercial properties and/or businesses. In addition, some districts offer tax abatement for purchasing and renovating buildings in historic districts.
- Risk Factor – The risk of investing in commercial vs. investing in residential properties is substantially lower. When you are renting a space to a business, you can require a longer-termed lease, guaranteeing supplemental income for several years at a time.
- Inflation – While the economy can be volatile, owning commercial property is a safeguard of sorts against inflation. The ability to adjust the rent to compensate for economic growth ensures a consistent stream of income to offset inflation.
Contact Mike Millsea to start your commercial real estate investment
Have we convinced you yet that investing in commercial real estate is a good idea? By putting your money into valuable opportunities, you can guarantee long-term income sustainability and asset growth, along with portfolio diversification. Michael Millea is your best bet for exploring your options in the Los Angeles area as a reliable, experienced trust real estate broker and agent. Contact Mike to discuss your real estate investment plans.