Benefits of Investing in Commercial Real Estate – Scott DiSarno

 Commercial properties normally refer to retail buildings, office buildings, warehouses, industrial buildings, apartment buildings, and also mixed-use buildings where the property has a combination of uses, such as retail, office and apartments. 

According to Scott DiSarno, an expert in commercial real estate, investing in commercial real estate can be highly beneficial. Given below are the most profitable reasons why one should invest in commercial real estate. 

Income Potential 

The best reason to invest in a commercial property is the earning potential the property has. Typically, commercial properties have an annual return ranging from 6% to 12% off the purchase price. Of course, this depends on the area, current economy, and external factors such as a global pandemic, as well. 

However, even that margin is a much higher range of profit than any other ordinary single-family home property, which has a profit margin of 1% to 4% at best. 

Professional Relationships 

Small Business Owners often take pride in their businesses and always wish to protect them. However, commercial property owners are not always individuals, but more usually LLCs that manage the property as a business. Because of this, the tenants and landlords have more of a business-to-business relationship, which keeps interactions professional and courteous. 

Limited Hours of Operation 

Most businesses go home at night, which simply means limited hours of operation in a day. Except for emergency calls at night for break-ins or fire alarms, you won’t have to worry about receiving a midnight call because a tenant has a complaint, repair demands, or has lost a key. 

Moreover, when it comes to commercial properties, it is more likely to have an alarm or remote monitoring service installed to notify the authorities if anything illegal happens at night. 

Public Eye on the Property 

Retail tenants always have a dedicated interest in maintaining their store and storefront, because if they don’t, it might hurt their business. As a result, commercial tenants and landlords have an aligned interest, which ultimately helps the owner maintain and improve the quality and value of the property. 

More Flexible in Lease Terms 

Unlike residential real estate, which is governed by dozens of state laws, such as security deposit limits and termination rules, commercial real estate has fewer laws to govern. This makes investment in commercial real estate a much profitable move when compared to investing in residential real estate. 

Conclusion 

Scott DiSarno is an expert in commercial real estate. He highly recommends investors invest in commercial real estate because of the reasons mentioned above. However, the benefits of investing in commercial real estate are not limited to these profits only and the margin can expand depending on the business type, area of operation, and other important factors.