Vancouver has enjoyed a healthy real estate market in the past few years. Commercial spaces are the most attractive investment opportunities for investors, as they provide benefits that other properties cannot.
Investing in commercial spaces can potentially net investors more money than they put in. Here are some reasons why commercial spaces are a great investment.
Generate Steady Revenue
Commercial spaces generate steady revenue through the leases they provide. Particularly for properties located in downtown areas, this yields a higher income stream than most stock dividends.
Commercial real estate also have higher annual returns than residential properties, averaging 6 to 12% off the price of purchase, as compared to residential units that only yield around 4%
High Return of Investment
Experts from vancouverbusinessbrokers.ca say that investors in a commercial space enjoy low maintenance for their income generator because lessees usually spend for property expenses directly. This means that, barring major physical overhauls of your property and possible mortgages, your initial investment will be your only expense.
While no asset is immune to devaluation, commercial spaces enjoy a higher rate of appreciation as compared to other investments. This is because commercial real estate consistently supplies the demands of businesses.
In contrast to stocks and corporate bonds, investing in commercial real estate gives you a fixed, or tangible, asset. This is ideal because fixed assets can easily be appraised for loans, and is more readily available for sale.
Fixed assets are more susceptible to physical damages such as fire or weather, both of which devalue your investment. However, with proactive management and preventive maintenance, a commercial space can continue appreciating in value.
Investing commercial real estate generally benefit investors. With high investment returns and a steady income stream, commercial spaces are an attractive opportunity for most investors.