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Why commercial real estate may be the better option

On Behalf of | May 17, 2017 | Real Estate Law |

People looking to invest in Ohio properties may gravitate toward residential as opposed to commercial real estate. However, there are several reasons why buying commercial real estate may be the better option. First, buyers may find that commercial tenants are better than residential tenants. In many cases, commercial tenants have their own maintenance teams or others who can take care of issues that residential tenants may expect their landlords to deal with.

Commercial real estate may yield higher returns than residential properties because commercial tenants often cover expenses such as insurance for the building. Commercial tenants also tend to sign longer leases, which means that landlords have a reliable source of income over the long-term. A commercial building may appreciate in value as adjacent properties are developed that attract more people and businesses. Therefore, a commercial property owner may benefit from stable rental income in addition to being able to sell the building for a profit in the future.

Both the building and land that a commercial property sits on have intrinsic value, which may make it a more stable investment compared to residential real estate. Compared to the stock market, commercial property values are generally less volatile, which helps maintain a steady return on investment. However, this assumes that a buyer chooses the right location.

Those who are looking to invest in commercial real estate may wish to talk with an attorney. Legal counsel can help review a purchase contract to ensure that the terms are in the best interest of the buyer. An attorney can also do a title search and take other steps to determine if there are any issues with the property that a buyer should know about before the sale closes.