Nick Statman-4 Reasons You Should Be Investing In Commercial Property In 2020

Property Expert Nicholas “Nick” Statman on Real Estate Investing in 2020.

If you’re ready to expand your property investment reach, make more money, reduce turnover, and work with a more stable clientele, it may be time to look into commercial property investing. Most property investors don’t dive right into commercial listings and prefer to learn the ropes of the industry by dealing with residential real estate and other traditional investment strategies first. Commercial investing is an entirely different investment strategy, with its own set of risks and rewards. 

Here are four reasons you should be investing in commercial property this year:

Higher Income Potential

Commercial properties can accommodate more tenants and occupy larger spaces than residential properties, which means they bring in significantly more money each month than a residential property. The annual return for commercial real estate is anywhere between 5 and 15%, much higher than the 2%-3% that you can expect from traditional stocks, or the 5% that is typical for a residential property. If you are looking to make more money this year, commercial property investing is the way to do it. 

Reduced Turnover

Commercial properties aren’t prone to consistent and often unexpected vacancies and turnover like residential properties are. If you invest in a multiple occupancy building and one tenant is late on rent or suddenly disappears, you still have the income coming in from the other tenants. Commercial leases are usually much longer than residential leases, sometimes lasting five to ten years, which means investors see long-term income generation and reduced unexpected vacancies. 

A More Hands Off Approach

Because tenants are responsible for most of the maintenance and upkeep of their space, investors and landlords can take a more hands-off approach to investing. When tenants and landlords are both invested in maintaining the property, the building maintains (or improves) in quality, which means the value of the investment also improves. Another benefit in commercial investing is the flexibility it provides for your schedule. Unlike residential properties, the entire building shuts down after hours. This reduces the number of frantic, late-night phone calls you get about losing a key or that something needs to be repaired. Commercial investing typically requires more capital upfront but requires less work on your end to maximize your ROI.

Qualified Tenants

Every investor/landlord knows that finding qualified tenants for a property can be stressful, time-consuming, and even expensive. There are background checks to run, references to check, screenings to pay for. And even after all of this, you may still end up with a tenant that causes trouble or is always late on the rent. Commercial tenants are typically businesses and corporations, and since the relationship with their landlord and the way they maintain the property directly impacts how they do businesses, they are generally easier to work with and less dependent than residential tenants.

Of course, commercial properties do come with a unique set of risks as well. Commercial properties do require a more significant upfront capital investment and can present unique risks that you don’t have to think about when investing in residential properties. And when it comes to maintenance, you’ll need to know how to do more than unclog a toilet or replace a dishwasher. You may need to hire professional help to handle commercial-grade repairs. 

If you’re ready to diversify your portfolio, make more money, and expand your reach as a property investor, commercial property investing may be your next right step. 

Spread the love
Nicholas ‘Nick’ Statman entered the property industry in 2001 and set up a property buying company that quickly established itself as one of the biggest in the sector. During this time the Company successfully transacted on thousands of residential properties across the UK. Nicholas Statman was an early pioneer of the ‘quick sale’ niche market which has since grown considerably with a multitude of companies now operating in the sector. Nicholas Statman has strategically built a sizeable residential and commercial property portfolio with a view to holding for optimum capital growth and a long term passive income. Nicholas Statman has been involved in almost every aspect of the property sector over a 20 year period – this includes buying and selling, development, letting and management and is now involved in the fast growing online/ hybrid Estate Agent industry.

Latest articles

2face’s family declares him missing, seeks DSS help

The family of popular Nigerian singer, Innocent Idibia, popularly known as 2face, has petitioned the Department of State Services over his whereabouts, declaring him missing. In a petition signed by their lawyer, Wilson Anuge, dated February 7, the Idibia family stated that the singer, also known as 2Baba...

LAWMA warns against illegal recycling, scavenging in Lagos

The Lagos Waste Management Authority has warned property owners, agents and private occupiers in the state to desist from illegal recycling and scavenging in unlicensed facilities. The Managing Director of LAWMA, Dr Muyiwa Gbadegesin, gave the warning in a statement on Friday in Lagos. Gbadegesin also urged them to halt indiscriminate sorting...

Expect defections back to PDP soon, say Ex-speakers

The Peoples Democratic Party Forum of Former Speakers has urged Nigerians to anticipate the return of many politicians who left the party in recent years to join other political platforms. The Forum described the PDP as the most widely accepted, well-organised, and best-positioned political party to address the nation’s challenges...

Joe Adam George: Another conference featuring bigoted Islamist coming...

The i3 Institute invited Mohammed Hijab, a British Islamist activist with a long track record of incendiary rhetoric, to speak...

Similar articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Subscribe to our newsletter

Spread the love