5 Reasons Why Investing in Commercial Real Estate is a Better Choice

Posted by Morrison Real Estate Group on September 9th, 2021

Buying real estate is one of the best forms of investment. You can double or triple your money when you buy a property and sell it at a higher price. Another option is to become a landlord. Rent the property out to businesses. It can be used for retail properties, office buildings, industrial spaces, warehouses, and many other purposes.

You are probably wondering if it’s better to buy Commercial Real Estate in Penticton rather than residential properties. It all depends on your goals and needs. However, there are benefits to buying commercial real estate in Penticton that you can’t get from a residential property. Here are some of the reasons why you might want to consider setting your sights on commercial real estate:

1. It has more income potential.

We all invest in real estate properties for their returns. Commercial real estate, on the other hand, has more income potential compared to residential rental properties. Studies say that the purchase price return of commercial properties annually is about 6-12%. That is significantly higher than the 1-4% returns from a residential property.

Business owners are also more likely to stay in a commercial space longer than tenants would in a rental property. It also tends to enjoy a lower vacancy rate, especially if the building is in a strategic business location.

2. It allows you to maintain a professional relationship with your tenants.

When you own a residential rental property, there are times when you might have to be called in the middle of the night to fix something. It can be a broken pipe or a busted HVAC system. It can be a big disruption to your life as well.

The chances of you experiencing that with commercial real estate in Penticton are lower. You will be able to maintain a purely professional relationship with your tenants.

3. The building operates during business hours only.

What is great about having a commercial real estate rental property is that it can only be used during business hours. You will not have to be called in at night to maintain or fix something. You can also rely on alarm systems and surveillance cameras to keep the property secure at night.

4. Lease terms flexibility

The laws that govern leasing terms in commercial properties are not as rigid as that of residential properties. This allows you to become more flexible in your lease terms.

5. It can be low-maintenance

It can be easier to manage since the building can be equipped with commercial-grade plumbing and electrical systems. And as mentioned above, you will not have to be called in the middle of the night to repair some issues. Just stay on top of the annual maintenance and you are good to go. Business owners will do their part in keeping their rental in good shape since it is needed for their business.

If you are ready to buy your first commercial real estate property, you can get the help of Penny Morrison Real Estate Group.

Josh Adams is the author of this article. For more details about Homes for Sale in Penticton please visit our website: morrisonrealestategroup.ca