Commercial property, also called commercial real estate, investment property, or income property, is real estate intended to generate a profit, either from capital gains or rental income. Commercial properties typically have an annual return of the purchase price between 6% and 12%, depending on the area, current economy, and external factors (such as a pandemic). That’s a much higher range than ordinarily exists for single-family home properties (1% to 4% at best). There is a lot of profit to make off Commercial property in the Blue Ridge Mountains. Even if you do not plan to rent out commercial real estate you can eventually if you decide to flip the property and resale. Commercial property in Watauga and Ashe County is booming in the market since the covid restrictions have been lifted, tourism is a big help to this. In this article, we will discuss the many benefits of investing in commercial real estate let’s begin.
Types of Commercial Real Estate
The technical difference between a residential and commercial property is as follows: Residential real estate is all single-family homes and one to four-unit rental residences. In contrast, commercial property is anything with five or more units. . Lastly, each property type comes with a different set of opportunities. Commercial property is any non-residential property used for commercial profit-making purposes. Commercial real is a term that covers industrial properties, retail properties. There are several different types of property in commercial real estate
-“mixed-use” buildings, where the property may have a combination of uses, such as retail, office, and apartments.
Pros of investing in Commercial Property
Let’s start out with the positive of income, who would not want to make an investment that will turn into clear income and profit? Sounds like a decent enough plan to me. The best reason to invest in commercial over residential rentals is the earning potential. Commercial properties typically have an annual return of the purchase price between 6% and 12%, depending on the area, current economy, and external factors (such as a pandemic). That’s a much higher range than ordinarily exists for single-family home properties (1% to 4% at best). Retail tenants have a vested interest in maintaining their store and storefront because if they don’t, it will affect their business. As a result, commercial tenants and property owner interests are aligned. Businesses usually go home at night, which means you work when you want to work. It’s often easier to evaluate the prices of commercial property than residential because you can request the current owner’s income statement and determine what the price should be based on that. Fewer consumer protection laws govern commercial leases, unlike the dozens of state laws, such as security deposit limits and termination rules, that cover residential real estate.
Wright Properties NC; Commercial Real Estate in the Mountains
Wright Properties NC is a premier real estate agency in the high country. If you see a commercial real estate property you are interested in and you would like to view contact us. We look forward to hearing from you.