You are looking to diversify your investments and have been researching investment options for months. After running into an old friend who excitedly shared their real estate investment experience, you are now thinking about commercial properties.
Making Money from Commercial Properties
According to Fundrise.com, investors make money from commercial properties in two main ways. First, you earn income from monthly rental payments from tenants. Second, you can make money when selling a property if there is an appreciated value. Remember Commercial property is diverse and includes office space, apartment buildings, industrial buildings, and retail buildings.
In the Brevard Melbourne/Palm Bay Florida area popular commercial property includes buildings which feature Clean Tech spaces. One strategy in making money is to purchase a property that requires upgrades and improvements that will increase the rent when completed.
Questions to Ask when Investing in a Commercial Property
Increasing the value of a commercial property requires research.
Here are a few questions to consider:
- What features do other desirable buildings contain?
- What type of businesses are working to come into the area of your potential investment location?
- Is there a need for more office spaces, retail locations, or restaurants?
- What type of commercial property are you interested in?
- What type of long-term improvements will make the property more desirable to tenants?
Creatively Making Money from a Commercial Property Investment
While it takes time (real estate is a long-term investment) for your commercial property value to increase, you might be able to boost the income from your monthly lease for tenants in a few creative ways. You could include outside storage for an industrial property or provide potential expansion space for a growing tenant or provide a service such as cleaning the office weekly, remove the trash, and pick up the recycling. These are all services that could be offered within a lease, and by using the same vendor there could be some cost savings to everyone.
At Ullian Realty our team of local brokers is ready to help you determine the best commercial/industrial property to invest in and the best strategy to utilize. By taking you through the Ullian Process you can be confident that your investment is the right one for you. Contact us today to learn more.