In the past few years, Florida’s foreclosure rate has increased drastically and now sits at historic highs. Commercial properties in prime locations remain vacant as builders and property owners drop their prices and offer incentives to attract potential buyers.
Before you invest in a commercial property, it is important that you understand how they differ from residential property investments. Here are a few facts you’d want to know:
1. The value of a commercial property is based primarily on the square footage of space available for use.
2. A commercial purchase may require a heftier down payment. If you plan to invest, you may be asked to come up with a down payment that is roughly thirty percent more than a residential property.
3. Commercial foreclosures can be ideal for investors. There are several commercial properties that are either facing foreclosure or have been foreclosed on. The banks are eager to sell as they do not want to hold on to commercial properties any longer than.
4. A commercial property can provide more stability and monthly income than one single-family residential investment. Lets compare the investments of two gentlemen – Mr. A and Mr. B:
Mr. A owns a small office building located in a middle class community. Mr. B owns a beautiful Victorian style home located in a prominent area of town. Mr. A’s office building is at full capacity with 10 tenants. Mr. B’s home is occupied by a nice family.
What if each of the gentlemen lost a tenant? Mr. A would lose only ten percent of his monthly rental income, while Mr. B would lose 100% of his if the single family decided to vacate the premises.
Investing in commercial real estate, can be financially rewarding for you and can give your real estate portfolio the diversity it needs. Hire a Florida attorney that will help you research potential commercial property investments and hold your hand throughout the purchase process.
The commercial real estate attorneys of Schecter Law have experience helping investors purchase office buildings, warehouses, shopping malls and multi-family apartment complexes that can result in a good return on investment for you.
In these rough economic times, many commercial tenants are complaining about landlords failing to fulfill basic obligations and adhere to other lease terms.
