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Why Invest in Commercial?

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  • Why Invest in Commercial?

Why Invest in Commercial?

As an investor, you understand the value of diversification. Contributing to a REIT or being a sole individual commercial investor will offer you a risk-averse portfolio, especially during bear markets. REITs trade on stock exchanges, which means that you do not need a significant amount of capital to start growing your portfolio. You can also have working capital in multiple sectors of real estate aside from commercial; including residential and mortgage trusts. Investors receive yields that are sometimes over 10 percent annually plus the prospect of share appreciation.

As you can see, the general performance of FTSE REITs overshadow the S&P 500, as well as the Russell 2000. 
– Analytics courtesy of NAREIT® –
https://seekingalpha.com/article/4224181-reits-outperform-stocks-3-strong-buys-heading-2019

You can achieve even higher returns if you go into it as a sole, or partnering investor in a local market. Most commercial properties will offer you an opportunity for multiple tenants- which means more than one stream of income. Some investors ignore REITs and and strive to own a portfolio of tangible properties at their discretion. Nonetheless, both methods have been proven to be effective. Check out our listings to see if you have a vision for an investment as a sole investor. We offer our clients properties that we know have great potential for return.

When considering residential real estate – take a look at the fact that commercial property owners deal with businesses instead of residential tenants. This makes matters rather straight-forward. Commercial property investments are rarely short-term. There is real potential for growth and that’s where the money-making-magic happens.

Author: James S. Chiarello of Kroll Commercial Realty

Referred sources :

https://www.lcirealty.com/blog/diversify-your-real-estate-portfolio/..

https://www.biggerpockets.com/renewsblog/2013/05/15/commercial-real-estate-investing/

https://www.forbes.com/sites/forbesrealestatecouncil/2017/08/16/why-passive-investing-in-commercial-real-estate-is-a-smarter-strategy-than-single-family-rentals/#447f93966ed2

https://seekingalpha.com/article/4224181-reits-outperform-stocks-3-strong-buys-heading-2019

https://www.forbes.com/sites/forbesrealestatecouncil/2018/10/29/what-to-know-if-youre-ready-to-start-investing-in-commercial-real-estate/#17f2ee37735f

https://www.investopedia.com/articles/stocks/11/real-estate-infrastructure-asset-allocation.asp..

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