New York investors with experience in the residential property industry might want to quickly make the switch to the nonresidential side of the industry. The reason for this is that buying commercial real estate offers several advantages over purchasing residential properties. Here is a look at how commercial real estate differs from residential real estate and the unique perks that come with it.
Commercial properties are basically businesses, as they feature overhead costs. They can be utilized in a number of ways; for instance, they may be used as factories, warehouses, medical care facilities and even storage properties. In addition, several classes of commercial properties exist. Buildings that are new and easy to access fall under Class A; those that require minor upgrades fall under Class B; and those that require significant investments of capital are Class C properties.
A major perk of commercial real estate is that it can easily produce several income streams through multiple units. This makes the property more capable of handling market fluctuations. In addition, commercial real estate leases last much longer than those for residential properties. Finally, because commercial properties are tangible, investors can use them as collateral.
With the sales of commercial real estate rising in 2018, now may be a good time to seriously look for income-generating properties in New York. Understandably, getting into this aspect of the real estate industry can be intimidating for those who have never done it before. However, an attorney can provide investors with the guidance they need to successfully navigate commercial real estate deals in the months and years ahead.