3 Advantages of Investing in Commercial Real Estate in Dallas
Whether you’re looking for an individual property to purchase on your own or you’re in the market to pool your capital with other investors to purchase equity in a larger property, a Dallas commercial investment property could offer you a number of advantages for your portfolio and your net worth.
Commercial Properties Often Have Longer Leases
First of all, if you’re investing in a retail or medical property, you’ll likely see leases that begin at a minimum of three to five years. Some corporate tenants will sign leases of up to 20 years, giving you the promise of stable, regular cash flow from the property for the foreseeable future. Furthermore, when you invest in a property that houses a successful business in a good location, the likelihood of lease renewal is much higher. When you buy commercial real estate for lease like this, you’ll have an incredibly lucrative and stable addition to your portfolio with regular positive cash flow.
Losing a Tenant Is Not the End of the World
If you’re investing in a retail or commercial residential property with multiple units, your passive income from the property will come from more than one tenant. Thus, if one tenant moves out or is unable to pay their rent and must be evicted, you will only lose a portion of your monthly or quarterly income from the property.
If you’re investing with others in a real estate club or REIT, then all of the investors will share the profits from the property on a monthly or quarterly basis. You may see a slightly smaller check if the property has lost one or more tenants, but you’ll see an increase as soon as those tenants are replaced. If you choose a successful property, you’ll never have to worry about how you’ll be able to afford to keep the property up or what will happen to your investment if your tenants move out and you can’t find replacements.
Furthermore, Dallas commercial investment property is historically known for its tendency to appreciate over time. Buying into commercial real estate for lease is a fantastic way to gain passive income now and hold onto an appreciating asset as the years go by. That appreciation will provide a superior hedge against inflation for the investment capital you initially put into it.
These are only three of the advantages of investing in Dallas commercial investment property. Whether you take full ownership of a property or you invest through an REIT, real estate investment club, or an investment firm, you’ll likely see more profits and more appreciation with more passive income than you would with other types of investments. Commercial real estate is the way to go for many new and veteran investors.