Commercial Real Estate Prescott AZ
Commercial realty is property that is used solely for business purposes and that are leased out to provide a work space rather than a living space. Ranging from a single gas station to a huge shopping center, commercial real estate includes retailers of all kinds, office space, hotels, strip malls, restaurants and convenience stores.
Investing in Commercial Realty
Investing in commercial properties can be lucrative and serve as a good hedge against the volatility of the stock market. Investors can make money via appreciation when they sell, but most returns are generated through rents collected from tenants.
In most cases, properties are sold by the building — one office building, one restaurant, one factory, etc. However, if a developer wants more capital to expand a project or wishes to see the returns more quickly, the project will be broken down into smaller units rather than sold as a whole. (To read more about commercial properties, check out our Exploring Real Estate Investments tutorial.)
Advantages to Investment Properties
One of the biggest advantages of commercial ventures is the attractive leasing rates. In areas where the amount of new construction is either limited by land or law, commercial properties can have impressive returns and considerable monthly cash flow. Industrial buildings generally rent at a lower rate, though they also have lower overhead costs compared to an office tower.
Commercial investments also benefits from comparably longer lease contracts with tenants than residential real estate. This gives the commercial asset holder a considerable amount of cash flow stability, as long as the building is occupied by long-term tenants.
Prescott Luxury Homes: https://youtu.be/6BXyE5eba5A
Million Dollar Homes for Sale: https://youtu.be/_PQ4533UzSo
Prescott Commerical Realtor: https://goo.gl/FdkaMy
Donny Karcie, MBA – RE/MAX Mountain Properties
731 W Gurley Street / Prescott, AZ 86305