3 + 1 reasons why it is worth investing in commercial properties
Investing in property is usually a wise decision, regardless of the property type. Most properties increase in value over time, and in the meantime, as you wait for your investment to grow in value, you can create an income by letting the property out.
When deciding to invest in property, many people think first about residential properties, becoming a landlord and renting houses or apartments out. However, investing in a commercial property is becoming increasingly popular as it comes with some unique benefits that can make it very attractive to investors.
There is a big variety and many different types of commercial properties that make great investment opportunities. From large out of town warehouse style shopping outlets to small city centre boutique shops, from office spaces, to hotels and restaurants; any of these could be your next big investment opportunity. Commercial properties offer a big number of asset options as well as diversification in terms of asset types, giving you the opportunity to target a greater pool of suitable tenants for each unique property.
So, when you are considering a property for investment purposes, in addition to taking a good look at the residential properties on the market, don’t dismiss commercial properties. Here are some of the main benefits of a commercial property investment.
Long term leases – a stable option
Commercial lettings tend to be associated with long term leases in place. At the same time, turnaround on commercial tenants is often less frequent than with residential properties. With these in mind, as an investor, you can rest assured that your commercial investment will provide you with high steady yield for a long period of time. If you are also short on time to manage your property investments, a commercial property can be the perfect option.
Higher rental yields
Commercial properties tend to provide higher rental yields as companies are often willing to pay more compared to individuals. Rent for commercial properties is based on the income potential of the particular property, which will be reflected on the level of rent you can charge. Thus, even a small shop or restaurant, well located on a busy street or in the city centre, can make be a very good high-income source.
A low maintenance investment
It is more common that a commercial tenant will take on fitting out the property to their own requirements. Commercial branding and interior design will most probably be taken care by the tenants, therefore refitting or repairing any fixtures will not be your responsibility. Again, for the more hands-off investor, this can be a bonus.
A high overall return on investment
For many investors, commercial leasing makes very good economic sense and can work out to require less investment of their time. Moreover, it provides a convenient option for those who are not located close by or who prefer to keep their involvement to a minimum. When bearing all this in mind, it certainly becomes clearer why a commercial property is an increasingly popular option for savvy investors looking to make the very best investments for the highest possible returns.
Discover a wide range of commercial investment opportunities
GoGordian has a diverse portfolio of commercial properties to suit any investor’s needs. If you are interested in an income generating, high-yield asset, then take a look at GoGordian’s commercial investment opportunities that are currently available. Check out our properties online or get in touch today. Our highly experienced, professional agents are waiting to take your call and guide you through the latest selection of commercial investment opportunities.