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What Types of Commercial Real Estate Will Provide the Best ROI?
Investing in real estate is a step to take very seriously. Of course, many people do dive in after the lure of a steady income, as well as three other types of income over time, namely appreciation, increase, and tax returns. For the person who doesn’t just dive in, how do you make sure to invest in properties that will bring in a greater yield?
Multi Properties helps you with the research that goes into the planning of your portfolio. We will break down this factor for consideration in this post.
Multi-tenant Properties
This seems to be a no-brainer. More tenants, equal higher return. The other benefits include the fact that a cluster of businesses together generally attract people. This will add to the demand for the property. Remember that businesses will usually be a better bet than individuals. As they will be more responsible in the leasing. Companies don’t want anything to tarnish their brand. They are more respectful to your space and make payments on time.
High Traffic Areas
These seem to be growing in the Garden Route and we have looked at why we are becoming a major are in detail in our other blogs here. Thinking about the amount of traffic an area will receive is part of this audit. If you have a diamond in all areas except for traffic, you will more than likely have a higher turnover. You probably don’t need someone to point out that that is bad for business. Take McDonald’s, for instance. Their properties always adorn some of the best real estate areas you can think of, and this is what they owe their success to. These plots are sought after for a reason. This is what sets us apart from other companies. We have been around since the 70s and know this area and what properties would be the best investments for what market.
Triple Net Lease Properties
This exception to the rule of highest return is more of a long-term investment. It remains attractive because of the assurance of income over time and the amount of input needed from you over that time is quite low. Triple net leases are usually geared towards single tenants, but many multi-property spaces use this contract as it gets complicated when it comes to upkeep with so many individual spaces. The risk is lower, and your estimation income is more balanced as you do not add maintenance cost that fluctuate month to month. This frees your time up for all the other things that really matter.
Conclusion
Choose a property that will bring you the best income and stability balance for what your goals are and you are on the road to success.
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