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Some of the Advantages and Disadvantages of Investing in Commercial Real Estate

Posted on: November 16, 2015

There are some key unique differences between commercial and residential real estate investments. Commercial property investments offer a higher potential financial reward, but this also comes with a higher level of risk. Understanding these risks and rewards is essential if you are looking to invest in commercial real estate.

It’s always a good idea to meet with an experienced South Florida real estate lawyer to discuss the potential benefits and downsides of any residential or commercial real estate investment that you are seriously considering. Your attorney can give you guidance and review your contract to let you know about any potential risks that you may have overlooked. All of these due diligence steps can help ensure that you are making a sound investment.

Commercial real estate investment can be complex

Some examples of commercial properties include warehouses, apartment buildings, office buildings, shopping malls, and industrial buildings. Every type of property has several details and nuances that must be learned by the investor, which makes commercial real estate investment a lot more complicated and gives it higher learning curve.

Below are some of the advantages of investing in commercial real estate instead of residential:

Some of the disadvantages of commercial real estate investment compared to residential are as follows:

If you’re in the process of closing a commercial real estate deal and you have any questions about the pros and cons of your investment, call (954)-779-7009 to schedule a consultation with Mark Schecter, an expert South Florida real estate lawyer.