5 Reasons Why You Should Invest In Commercial Real Estate


Things are starting to change in the business industry. Entrepreneurs these days are becoming confident in investing to commercial real estates than the traditional stocks that we are used to. There are a lot of reasons why someone should invest in commercial property. There is a lot of potential in this industry that can bring enormous success. We should take advantage of this situation because this is the future of the business industry. Here are five reasons why you should start investing in commercial real estate.

1. Huge returns

Unlike the stock market, commercial real estate investments can bring more and definite profit. Stocks have the tendency to drop too low that makes your money at risk. If stocks fall, it means you’re out of business. Let me give you an example. If you invest your money to a fitness gym, you can earn more stable income with less risk. We all know that people are starting to be cautious with their fitness. These days more people are going to the gyms than the past few years. More clients mean more money returns.

2. Stable Profits

Investing in a commercial real estate means you are not dependent on any movement of the stocks based on the world market. It solely depends on how well you will do with your business. The stability of your profit depends on you and not anyone else.

3. Tangible Assets

It is known that stock market comes with a lot of risks. You can gain millions today but be bankrupt the next day. That is how unpredictable the stock investment is. If you pursue investing in commercial real estate, you will have an assurance that your money will not be gone overnight. It is a certain asset that you can have. You can have a good night sleep without worrying that you can be poor as a rat come morning when you wake up.

4. Principal Paydown

In the industry of investment, we all know that the risks are high. The principal pay down determines a more positive return on investment as months goes by on a commercial real estate. As tenants pay their rentals every month, the equity increases as well as the money return for the investor.

5. Depreciation

It may sound off, but for commercial real estate investments, it is a powerful tool that can be used to make use of the losses to stabilize the passive income return. The specialists in the field can easily use the depreciation value of the property to their advantage that can result in more profit for the property.

Most of the people cannot see the great deal that commercial property investment can bring. You should think about it, and these five reasons provided above can somehow encourage you to start considering it. It is an excellent investment that can have less risk for the money that you will produce. It’s not easy, but with the right preparation, you can have lots of success through investing in commercial properties.

6 tips on selling commercial properties like gyms or sports facilities


More people are having health issues like diabetes, heart diseases, and obesity. These symptoms can be prevented by exercising regularly. People are concerned about healthy lifestyle more than ever now. They are going to gyms or health clubs to keep them fit. So, the number of gyms, sports facilities, and health clubs are increasing as well to keep up with the demand. This sector is improving.Therefore, investing in this sector will be profitable. Even though there is a huge demand for this kind of business, when you are thinking of selling a gym or similar facility, you will realize that it is not an easy task.

Selling a commercial property is more challenging than selling a home. The appearance of a commercial property is as important as that of the residential property. So, before putting up the ‘for sale’ sign, make sure your property is ‘move in ready.’ There are many things to consider in selling a commercial property like gyms or sports facilities. Here are some tips that can help.

Ensuring the equipment is in good condition

Equipment is the heart of a fitness center. As the days pass, they go through lots of wear and tear. It is evident when you look at the equipment. Equipment is the most valuable asset in your gym. So, you should make sure that it’s in good condition. If needed, you should invest in new equipment.

Size of the fitness center

The size of the gym or fitness center has a huge impact on the value of the property. When someone buys your property, he or she will think of expanding the business. If you are not ready to sell right away, then you can invest in building another facility in a new location. You can also move to a larger property instead of purchase a new property. This will increase the value of your property by many folds when you finally decide to sell the property.

Provide more services

More people are now spending money on fitness clubs. As there is lots of demand for this, you can increase your exercise offerings and have more training classes. This will increase the number of members in your gym or fitness club. So, you will generate more revenue. When you sell the property, you will get a better value.

Form corporate partnerships

Companies are now more concerned about their employees’ wellbeing. So, they often encourage memberships in the gym or other health clubs. In many businesses, you will see that health initiatives are taken; for example, arranging health-related competition. By getting more corporate clients, more revenue will be generated from the business. You can get into a partnership program where you can offer discounted membership opportunities to get more clients, by also recommending them healthy products and supplements. All these add up when deciding on the value of the property.

Client Retention

If you want to have steady revenue, then customer retention is very important. It will increase the value of your business. A major portion of the members wants to renew their memberships the next year. So, you should spend a considerable amount of the marketing of your business to get more customers. You can provide different incentives to your existing clients so that they stay with you for a long tie. If a gym has a good number of long term members, then the buyer will take it as a secure investment.

Hire a commercial real estate agent

There is a huge difference in the way a commercial property is valued compared to a residential property. Importance is given to the income of the property in case of a commercial property. So, you need to provide documentation of the extra income on these properties. You should put together all your documents before you hire a real estate agent. This will help you to sell your property faster. Without an experienced commercial real estate agent, it will be very difficult selling the property by marketing it yourself. A commercial real estate agent is experienced in this field. They will also help you in arranging all the documents and negotiating with the buyer.

These six tips will help you get a better value for your business. You should take these steps six to one year before you put up the property for sale.

Infographic designed and produced by: House Buy Fast

Infographic designed and produced by: House Buy Fast