Commercial real estate investing can present numerous chances for monetary stability and progress, but it also has its share of additional factors to consider.
The two main benefits of commercial real estate for an investor are the immediate return on investment and cash flow from the leases, and the potential value growth/depreciation of the asset over time.
This brings a two-fold equation that isn’t just a straight Capitalization Rate (CAP Rate) return, but also determining how long to hold the property and when is the best time to sell the property after it has likely appreciated in value over time.
Important factors to consider are rental escalations, expiring leases, finding and retaining quality tenants, tenant improvement costs, capital improvements, depreciation, and capital gains to determine the correct hold period and ideal disposition period.
For more information on key factors regarding Commercial Real Estate Investment Properties, contact Stark Accelerators at 775-825-4400 in Reno or 208-722-2400 in Boise.