If you’re considering relocating your corporation, expanding your facilities, or diversifying your real estate portfolio, you may want to give commercial foreclosures some thought.

The economy’s downward spiral over the last couple of years has resulted in business layoffs, strategic downsizing and some business closures. This historic blow has left the commercial property market crippled and in need of major recovery. As property owners work feverishly to climb out of their respective holes, many will not survive and will succumb to these difficult times.

As companies continue to dissolve, we’re witnessing an increase in the foreclosure rates within the commercial property market. Whether you’re shopping for a property for your company or an investment, you’re likely to find bargains in the most sought-after and competitive real estate markets throughout the US.

According to Costar, the go-to-resource for commercial property information, Florida is one of the nation’s leaders (ranking #2) when it comes to distressed commercial properties. Florida has more than 7700 commercial properties that are delinquent, behind on loan payments or in some stage of repossession. California occupies the #1 spot with over 10,000 distressed commercial properties.

Here are 3 good reasons business owners and investors should purchase commercial foreclosures:

1.  Commercial foreclosures are sold at a fraction of their value

An obvious benefit to purchasing any foreclosure is the reduced sale price. Most properties that are recovered by the banks through foreclosure are resold at a fraction of its value. Oftentimes, they’re sold for less than half of the original asking price. For a property investor, grabbing a property for significantly less than it’s worth, will provide for a better future investment.

2.  Commercial leases can produce steady income

As the real estate market attempts to recover, commercial leases are becoming more attractive. Property investors can purchase commercial properties in prime South Florida locations, and then lease those properties to companies in need of office or industrial space. With the monthly rental, an investor can cover his/her monthly mortgage and annual property taxes, and watch their investment grow until they’re ready to sell the property and receive a larger return on investment.

3. Good Return on Investment

If you’re like most investors you want to buy foreclosures for pennies on a dollar, but you want them to be worth much more by the time you’re ready to sell them. Smart investors will hold on to their commercial properties for a few years as the market rebounds and the value increases, and then sell them for two or three times the amount they paid and enjoy a nice project.

There are many good reasons to purchase commercial foreclosures, although we’ve only discussed a few. If you’re looking to buy commercial property in South Florida, regardless of your motivations, you may find what you need in the commercial property foreclosure list. As you begin your search, don’t forget to enlist the services of an experienced property acquisition lawyer in South Florida to help you navigate the process and secure the ideal property.