Commercial real estate is highly popular among investors these days. This property has several benefits and yields attractive income throughout the year. If you are planning to invest in commercial real estate, you are taking a wise move and decision.

Gene Bernshtam is a skilled professional in commercial real estate and successful as a property developer in the USA. Besides the above, he is an avid car collector and fond of traveling, scuba diving, and business. According to him, investment in commercial real estate is highly profitable, however, you must know what it means and how it can generate consistent returns for you in the future.

Commercial real estate refers to-

  • Retail buildings
  • Warehouses
  • Office buildings
  • Apartment buildings
  • Industrial buildings
  • Mixed-use buildings – Here the property has a combination of uses like apartments, retail, and office.

Now, the next question that comes to your mind is to know what are the benefits of commercial real estate investments?

The following are some of the major advantages of buying commercial property-

  1. High-income potential– The earning potential is very high in commercial real estate. Properties generally have a yearly return over the price for purchase between 6% and 12% that depends on the region, the present economy, and other external factors like, for example, the pandemic. This rate is more than single-family residential properties that range from 1% to 4% at its best.
  • Professional business relationships– Owners of a small business are proud of their companies and protect their companies for their livelihood. However, an owner of any commercial property is generally not a person but mostly, an LLC and operates the whole property as a different business in itself. The tenant and landlord here have more of a business-to-business relationship with the customer to keep the interaction courteous and professional.
  • Keeping a public eye on the business property– Retail tenants tend to have a vested interest in maintaining their stores as if they do not, it affects business performance. Here, both the interests of the property owner and the commercial estate owner are aligned. This improves the quality of the property and the value of its investment as well.
  • Price evaluation-It is simple for you to evaluate the costs of commercial property than residential properties. You can ask for the income statement of the present owner to determine its base price. If the seller uses a broker with good knowledge, the purchase price can be fixed on the prevailing rates for the type of commercial property they are willing to buy (industrial, office, retail,etc.)

According to Gene Bernshtam, investing in real estate offers you a lot of advantages. However, a lack of research and awareness can get you into trouble. He recommends you always consult a skilled and experienced professional in the area to get an accurate insight into the dealing. Make sure you understand the profitability factor of the commercial real estate after taking into consideration, its location, price, space area etc.