Commercial Property is Still a Good Investment

Until a few years back, only a few wealthy people dominated commercial real estate. In fact, most of the wealthy people invest an average of 15% of their portfolio in commercial property. However, there is no reason why only the wealthy should gain from the benefits of commercial real estate. While most people only invest in a home, they too can gain a lot by investing some money into commercial real estate. Here are some of the benefits of identifying a commercial property for sale and investing in it.

Commercial Property is Still a Good Investment

You Can Use it to earn a Passive income

There are three models for investing in commercial property. In one model, the tenant pays some of the property taxes and all utilities while all other responsibility is up to you. In the second model, the tenant pays for maintenance, utility, and taxes, while you are responsible for maintaining the roof, structure, and the driveway. If you want to make a passive income from your commercial property, you use the third mode. In this model, the tenant pays for everything. In short, you will only collect your rent.

There is a Flood of Capital

The world has recovered from the financial disaster of 2008 and the world economy is growing. Companies are hiring employees and there is a lot of capital to go around. As a result, if you have set your eyes on a commercial property, right now might be the best time to invest in it. Financial institutions will offer you favourable terms and finding tenants will be easy. Besides that, rent rates are rising. If you live in a rental property or own a business, you will attest to this.

There is Less Competition

Most investors still have their eyes set on residential property. However, that will soon change as online portals like continue to make it easier than ever to find commercial real estate in which to invest. Right now, there are fewer people interested in commercial property and if you make your move right now, it could pay off in a big way in the future.

Better Relationships with Tenants

With commercial property, relationships with your tenants are easier. This is unlike residential properties where the law might not be on your side most of the time. Commercial property owners have more rights when it comes to dealing with clients. For instance, you do not have to worry about late night maintenance calls or being sued when things do not go well for the clients.

Altering the Property is Easier

Getting permits to alter residential property can take long and it is hectic. However, with commercial property, you have more leeway to make changes to the property. This means that you can quickly respond to changes in the local area and cash in on them.


In general, any property investment is a good move. With the economy doing so well, it is likely your commercial real estate will be worth a lot more in a few years. It gives you more leverage with the banks to invest in an even bigger property in the future.