When people consider purchasing real estate, they may immediately think about buying residential properties. However, owning commercial real estate properties is also a smart move in New York and elsewhere. Here is a look at a few major benefits of commercial real estate ownership.
First, commercial properties are long-term investments that may increase in value in just a short period of time. In addition, the benefit of these properties is that, even if vacancies are present, other tenants can still cover the investor’s overall operating costs, such as common area expenses, building expenses and taxes. As a result, owning commercial properties is generally less risky than owning residential properties that one is renting out, for example.
Yet another benefit of commercial properties is that research shows that these types of investments during the past 10 years has generated returns of 7% to 15%. This makes commercial property investments more lucrative than investments such as stocks and bonds. The greatest returns have been linked to office spaces located in suburban areas, whereas warehouses rank among the bottom when it comes to financial returns.
Although commercial real estate clearly offers many benefits, purchasing real estate can be intimidating, especially for those who have never done this before. However, an attorney in New York can walk aspiring investors through the legal aspects of buying real estate so that they can navigate their transactions with confidence. The attorney’s chief goal is to make sure that the client’s best interests are protected during all states of the transaction.