About commercial real estate investing

People in Pennsylvania who want to begin investing in commercial real estate should understand exactly what it has to offer. The tenants that the investors will be dealing with are businesses, and commercial leases tend to be longer than residential leases so that the business are able to become established.

A single commercial building can have more than one unit, which corresponds to multiple tenants and multiple streams of income. Because there are longer leases, the vacancy rate for commercial properties tends to be lower than that of residential properties. The long-term nature of commercial property investments means that there is real opportunity for growth.

There is more than one way for investors to acquire commercial properties. They can purchase a share of a property and become co-investors in an arrangement in which the buyers are all responsible for their own share. Investors may want to participate in a real estate investment trust that distributes the shares of any profits earned by a commercial property managed and owned by a specialized firm. Another option that investors have for acquiring commercial properties is acting as a private money lender in which the funds they provide are used for building projects.

There are also many different types of commercial properties to consider when investing. Coin-operated buildings, such as laundromats and car washes, may be ideal for investors who have strong mechanical backgrounds or interest in mechanical companies. Storage unit buildings require little maintenance and operating costs and come in a wide range of sizes. Flex warehouse buildings are another type of commercial property to consider.

An attorney who practices commercial real estate law may assist clients by working to protect their rights and interests during commercial real estate transactions. The attorney may negotiate lease or purchase terms for contracts or as well as assist with real estate closings.

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