Owning and managing a retail space for lease is a terrific way to expand your portfolio. The investments are stable, generally reliable, and provide a tangible source of income while adding diversity to your portfolio. Here are a few reasons to get started in commercial real estate investment, and ways to maximize your investment’s return potential. Be sure to make an optimization plan as you maintain your current properties and invest in potential new opportunities.
Commercial real estate is in an upward trending market cycle.
Commercial real estate markets are picking up, and booms can last for up to fifteen years. Investing now in commercial retail spaces will help to maximize your return on investment overall.
Retail properties add stability and diversity to your portfolio.
By investing in a leasable retail space such as a strip mall, shopping center, or indoor mall, you are adding much-needed diversity to your portfolio. These types of investments don’t depend on a single tenant for success, protecting your income stream.
Retail space for lease offers crowdfunding opportunities.
Even investors with minimal capital can put their money to work by investing in commercial real estate through a real estate crowdfunding platform. Not only does this make for an effortless income stream, but there are no management responsibilities on the part of the investor as well. Crowdfunded investments also allow for the investor to be selective, choosing local properties that they know well if they so desire.
Retail space is a tangible investment.
While investing in the stock market has the excitement of rapid ups and downs, the stability and tangibility of commercial real estate shouldn’t be overlooked. Your capital isn’t just floating around in the clouds; you can walk up and touch it! Retail space is also a very stable choice, offering long leases and steady streams of reliable income.
Be sure to manage your bottom 20%.
Managing the bottom 20% of your portfolio can be a challenge. Sometimes you’ll need to make tough choices to maintain overall profitability. Be willing to make hard cuts if needed. You may need to terminate a lease or at least renegotiate the terms.
Contact us if you’d like to invest in a retail space!