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Can Florida residents view commercial property as an investment?

When South Florida readers think about real estate, they probably envision property that they purchase to make their own. Whether it is a new home or piece of commercial property that will be used for business operations, both residential and commercial buyers are usually approaching the real estate market with this frame of mind. However, can Florida residents get into the commercial real estate market with investment in mind?

Many people are familiar with the concept of “flipping” residential real estate for profit. This usually involves buying a home, making renovations or repairs and then selling the home for a price that accounts for all of the materials and labor needed, as well as a nice profit. However, investing in commercial real estate can be quite a bit different.

 

In commercial real estate investing, property owners are typically looking to attract tenants who will rent the property for a monthly amount that covers the property owner’s expenses and generates profit. The commercial property could be an office building, warehouse or retail location. As long as the tenant is able to use the property reasonably and pay rent on time, a property owner could very well make a nice return on the investment.

There are, of course, risks involved in getting into the commercial real estate market as an investor. South Florida residents who are thinking of making such a move will likely require the best information they can get in order to minimize risk and maximize profit.

Source: homeguides.sfgate.com, “Commercial Vs. Residential Real Estate Investing,” Tony Guerra, Accessed May 14, 2016

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