LASI HOMES

By Umair Lasi - James Bond of Calgary Real-Estate

RSS

Commercial Real Estate: to Invest or Not to Invest?

Commercial Real Estate: to Invest or Not to Invest?

Many investors and brokers share in the view that commercial properties tend to offer investors greater financial rewards as compared to residential properties. However, while many people daydream about investing in commercial real estate, most are reluctant to take that step due to inaccurate assumptions about this type of financial venture. Below, three commonly held myths about investing in commercial real estate are debunked in hopes that this information may light a fire under an existing investment desire.


 Myth #1: It is hard to find good deals


Truth be told, there are almost always good investment prospects in the commercial realestate market. It is only a matter of finding them and putting in the effort to capitalize on them. Sometimes an amazing opportunity may not be outwardly obvious at first, which is where a good real estate broker can provide invaluable advice. Worth noting, some of the best opportunities tend to surface in times when the market it down, which is why now is a great time to take a chance on the right property.


 Myth #2: It is too risky to invest in commercial property


The reality is that investing in commercial real estate is like investing in anything else; your level of risk depends on what you are willing to take on. While there are a wide range of factors that impact the degree of risk associated with any given property, some property types are considered riskier than others. For example, triple net lease properties, wherein the tenant agrees to pay all real estate property’s taxes, building insurance, and maintenance in addition to any normal fees that are expected under the agreement (rent, utilities, etc.), are considered substantially less risky as compared to office properties. Keep in mind that in many cases, greater risk translates into greater reward. An effective real estate broker can help you balance your risk and rewards based on your capabilities, needs, and ambitions.


 Myth #3: All commercial income properties are publicly advertised


Relative to the number of commercial investment properties available on the market, it is fair to assert that very few are publicly advertised. This makes it incredibly difficult to comprehensively consider your options on your own. This is exactly where a good real estate broker with lots of good relationships with other investors and brokers can come in handy. After all, it is only when we consider all our options can we make an informed decision.


Hopefully, you found this short article informative, and perhaps even motivating. If you have any questions about investing in commercial real estate, I would love to talk them out with you at your convenience. Feel free to call me at 403-667-5901 or email umair@umairlasi.com.


You can also visit my webpage for more information at www.umairlasi.com!

Comments:

No comments

Post Your Comment:

Your email will not be published
Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.