Commercial real estate is a side of real estate that many people don?t quite know much about. A lot of people understand how to buy and sell residential real estate properties. They know how to contact a licensed real estate agent in their area, who often does much of the residential real estate work for them. However, what do you do if you are interested in purchasing commercial real estate assets? Where do you find commercial real estate companies or how do you even get information about buying commercial real estate? Is it even a good idea to purchase commercial real estate? Commercial real estate is a great investment and is also a great way to get ahead when you own a business. Many companies throw away their hard earned profits by renting out business real estate property. Choosing to own a commercial real estate building will help keep much of that profit in your business and will provide returns later on, should you choose to sell the commercial real estate.
Banks typically lend 60 to 70% of the property value for commercial real estate. Someone who is interested in obtaining commercial real estate assets should have good credit and a decent amount of money to put down on the property to achieve the loan. Even those investors without a business can benefit from owning commercial real estate assets. Real estate investing is a great way to make additional income. Commercial real estate owners can lease out their buildings, having tenants who pay the loan payment, while also providing the owner with additional profits. Commercial properties generally have an annual return off the purchase price between 6% and 12%, depending on the area of the commercial asset.
Additionally, commercial real estate for lease is in demand. The RICS commercial market survey for the first part of 2015 marks the 10th consecutive quarterly acceleration of demand for commercial properties, with 46% more respondents seeing greater interest in commercial real estate assets. With the ever increasing economy, people are making more money and are more financially stable. They are more willing to take the risk of small business ownership. Many of these small business owners need a commercial building to operate out of until their business grows. It is a great time for real estate investors to take advantage of the economy, purchasing commercial real estate and then renting it out to small business owners.
Commercial real estate is a great business to be in right now. It provides many benefits to the small business owner, reducing the amount of profits that are paid to commercial leases. Those without small businesses, such as real estate investors can also take advantage of the growing economy and purchase commercial real estate for the purpose of small business leases.