If you have been in the probate real estate industry for a while then you know there are times that commercial property comes available. Should you take advantage of these opportunities? Are their risks associated with commercial property? These are just a few of the questions you should be asking before you decide to pursue this avenue.
To be sure, commercial property can be profitable. With higher levels of rent, tenants that generally prefer not to move and fewer internal items to break at each property, commercial and business space can be a great way to profit.
Unlike residential property, there is less wear and tear on the décor of the property as the tenant usually takes care of not only furnishing it, but providing floor and wall coverings that show off their business. Roofs
are generally more simple in design than on a home and can be maintained easier. A business being in one location for a long period of time means that as a landlord you will have fewer turnovers at your site.
In addition to enjoying higher rents and less upkeep, the properties are generally worth more than a single home. There are commercial properties that can be worth millions of dollars to the right buyer if you choose to buy and sell rather than rent them out. Or, if the area that the building is in becomes desirable for development, you may have a real estate company come in and purchase your lot and building at a premium.
One of the major
differences in working in commercial real estate is the terms used on the sale and lease. Rent schedules can be bit different as well, which means that it is always a good idea to have your attorney review all of the terms before you sign so that you can make sure you will be able to profit over the long term.
While there is bigger risk in owning commercial property, there is also greater reward for people who decide to go that direction. Before you get started do your research, but know that commercial real estate – especially that gained from probate situations – can create profits that can grow your business to a significant and extraordinary level.