Commercial investments, or buying real estate that is used for business purposes as an investment, have long been a source of wealth in America. There are many reasons to invest in commercial real estate.
Why Do People Put Money into Commercial Real Estate?
• Provide a strong and stable cash flow. With returns that generally outperform the S&P 500 by up to 2 times.
• Offer diversification of one’s investment portfolio that helps protect overall returns during an economic downturn.
• Deliver tangible assets that can be used to produce goods and services that are reflected in the value of the property. And an asset can typically be remodeled or restructured for other purposes and other opportunities.
• Give important tax advantages with the deductible benefits of depreciation and operating expenses.
• Provide a hedge against inflation.
• Offer investment leverage.
Don’t Forget About These Commercial Investments
Commercial investments are most often considered as being retail stores, offices, hotels, factories, and warehouses. But there are some great opportunities in the following categories:
• Commercial multifamily (apartment) complexes. As the demand for more affordable housing continues to increase, apartment complexes have become a more attractive investment area.
• Mobile home parks. Again, in the pursuit of more housing opportunities, investing in mobile home parks has become a stronger investment opportunity.
• Self-storage facilities. Yes, there are many of them, but the appeal of this area continues to grow.
• Cell towers. This category may not be on many investors’ radars. But the continued expansion of America’s reliance on cellular communication has made buying land to erect cell towers a great investment.
• Datacenters. Data centers have expanded rapidly in recent years as data demand has risen with the constant expansion of technology.
• Senior living. As America ages, investing in independent living and skilled nursing facilities offers good opportunities.
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