Like any other investment, real estate investments come in a range of flavors. When investing in real estate, people only consider either renting out a single family home or any other type of residential property such as townhouse or condo. Another smart investment in real estate market is commercial real estate. A commercial property in its broad term means leasing out the properties to provide workspace rather than just living. Commercial properties include offices, shops, restaurants and shopping malls.
One of the most attractive advantages of commercial real estate is the handsome leasing rates. A developer can get more profits quickly if he broke down the project into smaller units rather than to be sold as a whole. A commercial investment can bring positive cash flows and impressive returns in the areas where the quantity of construction is limited.
Commercial properties also benefits from generally longer lease contracts with its occupants than residential properties. Residential properties are rented out for short-term periods whereas commercial properties are leased for longer duration not less than one year. This investment gives a stability of considerable amount of cash flow as long as the space is occupied by the tenants.
Real estate is not a game of tight pockets. One needs to have enough riches to invest in it. To turn out your commercial real estate investment into success, one needs to have enough wealth and knowledge about the market. This type of business is not suited for the areas where there is low scope for development and space. The potency of the local economy of the area will also decide the fate of your investment.
The only disadvantage associated with the commercial properties is that they require refurbishing. Each occupant may have different needs according to their work culture which may require extra cost to be spent on refurbishing it. For an example IT offices may require cabinets for each worker and a cafeteria in the same building may require adjustment to their needs. Hence, it will increase the expenditure.
Commercial properties involve high-risk as well as high benefits. It will please the sophisticated investors that are looking for a space to settle down their business. You need to be in touch with the commercial market on regular basis. Check out the rates at which construction permits have been passed. This will give you a hint how new developments affect the economy of the region.
Commercial real estate properties are of course the most valuable source of your income. If there is a tough completion for land and property in the region then you must not neglect the fact that it will have dilutive effect on your business.
Harji Realtors is one of the leading real estate agents in the region of Chandigarh, Mohali and Kharar. For more information on great deals in Flat in Mohali and the best Plot in Mohali check out our website