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Reasons for Investing Commercial Real Estate Income Producing Property

Lease Duration

Often residential tenancy is a month-to-month lease.  If the residential landlord is lucky it may go up to six months to a year.  However, commercial real estate in Greenville, SC often includes long term leases.  Usually, a commercial lease will be for two, three, five, or even longer.  And commercial real estate leases sometimes have lengths of ten to twenty-five years.  These exceptionally long leases are sometimes found in large properties with tenants such as large retailers and banks. 

Assignment of Lease

Furthermore, if a commercial real estate tenant sells his business then the new tenant normally continues to operate and pay rent subject to the original lease.  The commercial lease is seen as binding commitment and the landlord benefits.

Tenants Earn Their Income on Your Premises

The effect is simple but enormous.  As a result of the money-producing attitude that your tenant will have he or she will fix things themselves because it must happen right away.  Also, they’ll be looking for ways to enhance the property.  It’s a win/win.

Improvements

It’s not always the case that the landlord pays for major improvements. It’s very conceivable for landlords to place a stipulation that the tenant must pay for renovations or improvements.  In many cases that I’ve seen, the landlord and tenant will split the bill.  Both options look great considering that the landlord always foots the bill with residential improvements.

Collecting Rent

Although businesses are made of people, collecting rent on commercial real estate is generally easier and less emotional.  Most rent collections are done through an electronic bank account.  In contrast, a residential income investor must deal with collecting the rent by meeting or mail. Both of these can be time intensive.

Management Overhead

Commercial Tenants have an attitude of looking over things themselves. The management is easy and painless compared to management intensive residential properties.  Many times, landlords of commercial properties don’t need a property management.

Currently, there are a copious amount of foreclosure listings/bank owned commercial real estate properties that investors can take advantage of in Greenville, SC.  Commercial Real Estate leases can be difficult to dive into if you are a new-comer , so therefore, contacting a broker is highly recommended to assure you of making the most of investment/search/lease negotiation.

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