Investing in any properties means expecting significant benefits in return. Though residential properties have their own advantages, if you are looking to invest in properties that can yield maximum benefits, then commercial spaces are the correct choice. Commercial properties consist of offices, retail buildings, warehouses, industrial buildings, and multi-use buildings. Investing in commercial spaces can potentially result in passive income and higher returns.
Let’s have a look at the perks of investing in commercial spaces:
While investing in properties especially in commercial, investors need a large sum of capital. Obtaining more finance for commercial spaces is much easier compared to residential, as there are many flexible financing options available. Investors can raise capital by using traditional financing options and can also pool the capital with the help of hedge funds, investment groups, and private equity firms. There are a series of flexible payment options such as banks and other lending institutions which are available to people who are interested in buying and investing in commercial property.
Investing in commercial spaces can provide better cash flow and a higher guaranteed ROI, depending on the type of investment property. Investors can make more money with commercial properties due to more space, more tenants and longer lease terms. Higher rental yields and ROI means positive cash flow for investors.
The advantage of investing in commercial spaces is that they have a long leasing period compared to residential properties. The benefits of a longer lease are lower turnover costs, lower vacancy rates, and a higher guarantee of positive cash flow. Longer lease term means reliable and secure rental income for many years.
In commercial properties, triple net leases are extremely valuable for investors. A triple net lease means that the commercial property owner is exempt from paying any costs on the property. The individual or company leasing the property takes care of all the property expenses directly which includes building insurance, property taxes, and maintenance costs. Big companies often go for a triple net lease in order to maintain the property in a way to match the standard of their brand. Investors can shift the property expenses to the tenant and can earn a guaranteed rental income.
The market value of commercial properties depends on the revenue and cash flow generated by the property. Higher the revenue, the higher the resale value will be. For example, if you can increase your cash flow, you can increase the value of the investment property. This means investors can force appreciation on their commercial spaces by finding ways to produce more revenue. Finding high-quality tenants, raising the rent, adding amenities, and ensuring the best use of investment property are some of the best ways to force appreciation and increase revenue.
Namrata Group has a variety of properties consisting of commercial as well as residential all across Pune, with good connectivity and premium amenities. Come and have a look at our commercial spaces and make a smart investment choice today!