Every investor finally gets into commercial real estate investment sooner or later and there are number of good reasons to do so. As your portfolio grows with time, managing your investment is not that easy in case of residential estates due to the number of homes and tenants that you have to deal with, whereas the same investment in commercial property will be comparatively easier to manage.
Different commercial properties like offices. Bulk retail, medical centers, motels, health clubs, car yards or shopping malls have different strengths, rewards and the risks of its own. The return on investment is also higher as well as stable in case of commercial real estate. The ROI is normally around 10% for a commercial property. There are various factors that decide the value of any commercial property. Some of these include quality of lease, length of the lease and even the quality of the tenant.
Taking care of a commercial property is also simpler as the tenants do this part of work for you. As the tenant derives the income from these properties, they make sure that the property is in the best possible standard. Many tenants even spend thousands of dollars to uplift the property and much of their improvements stay in the property even if they are gone.for more information, visit : https://www.commerce.alaska.gov/web/cbpl/ProfessionalLicensing/RealEstateCommission.aspx
The law pertaining to commercial real estate lease contacts is also very flexible and the clauses of the lease can be amended as per the agreement between the deciding parties. The owner has the freedom to charge penalty on any outstanding rent and even lock-down the property in case of continued defaulter. The biggest and the only risk that the commercial real estate property has is the time when the owner has to find a new tenant in order to fill up the vacancy in case the previous tenant vacates. click here for more details.