Virginia Commercial Real Estate
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Commercial Real Estate for Sale
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What to know about investing in commercial real estate.
With the changes brought about by the pandemic, commercial real estate may not seem like the best way to invest your money. However there are a number of reasons that continue to make commercial property a good investment opportunity.
What makes commercial real estate attractive to buyers?
Lower vacancy rates
Commercial properties are less likely to experience vacancies. Unlike the 6 months or annual leases of single family homes commercial property leases range from 3 to 5 years to as many as 20 years. Many commercial properties have multiple tenants renting space creating an increased profit potential.
Hours of operation and Renters Investment in Curb Appeal
Renters of commercial properties tend to go home at the end of the day resulting in you having more personal time with limited after hour emergency calls. Your tenants have a vested interest in the properties look and upkeep and are more likely to keep the property looking its best.
Triple lease concept
Large companies such as Starbucks and Walmart are invested in their brands’ look and feel. Because of this reason these types of companies may agree to a triple lease agreement. With this type of lease, the tenant becomes responsible for the building’s property taxes, building insurance and the cost of any maintenance or repairs to the building. This type of agreement allows the company to retain control over the way the property looks.
What type of commercial real estate should you invest in now?
Industrial and Warehouse spaces.
The pandemic created a surge in the already booming e-commerce business. If you are interested in investing in commercial real estate then industrial spaces and warehouses are a great option. All of the companies selling their wares via the internet need spaces to create, assemble and store their product giving you the perfect place to invest your money. Even if in person shopping rebounds to pre-pandemic numbers the need for industrial and warehouse spaces will not go away making this a safe investment opportunity.
Employers had to allow employees to work from home if possible during the pandemic. Companies and their employees are finding benefits to this work from home situation and have continued this trend. Doing so means that companies are reducing their office footprint but this does not mean that office space is a bad investment. You need to be looking at the right type of office space. Companies that continue to staff offices are safety and wellness focused and are placing their emphasis on things like hands free technology and air quality.
When the pandemic hit many people found comfort in returning to their family home. Now that pandemic regulations have loosened a bit people are once again searching for a home of their own. Those looking to rent an apartment prefer suburban rather than urban areas making Multi-family properties in suburban areas a strong investment.
Self storage areas are a strong investment even in an economic downturn. When the economy is thriving people purchase items they desire and do not always have the space for them (especially large seasonal items) and store these items in self storage units. In periods of economic downturn people are often forced to or choose to downsize and need a place to store those items that they cannot fit in their smaller new homes.
The pandemic changed many things about the way in which we do business in this world and has definitely left its mark on real estate. Change is the way to growth and commercial real estate is no exception. With a little information about why investing in commercial real estate is a good idea and knowing what investments make the most sense now, you can rest assured that you will have a strong return on your investment.