Ways to Monetize From a Commercial Real Estate Property

If you consider the history of various investment initiatives undertaken in several businesses, then you will find that people who have invested in commercial real estate properties have gained the most. Moreover, if you consider the list of most successful entrepreneurs in the World, you will find the names of several real estate moguls in it.
There is no running away from the fact that investing in commercial real estate properties can bring windfall gains to the investor. This is why we are witnessing a boom in the commercial real estate sector and many people are increasingly warming up to the idea of investing in commercial properties.
Moreover, if you have already invested in a commercial real estate property or own a commercial property, then you must be looking for ways to increase the amount of returns you receive on your investment.
There are various ways through which you can monetize from a commercial real estate property. You just need to have a proper understanding of these methods. Let us discuss the ways to monetize from a commercial property.
Invest in short term rentals
This is one of the best ways to monetize from a commercial real estate property because sharing economy startups are making huge progress due to globalization and commercial real estate investors have realized the profit potential of investing in these short-term rentals.
Nowadays, globe-trotting people are looking for diversified options to stay in a place than the traditional approach of staying in a hotel. This has been a boon for these properties as they offer cheaper accommodation rates in comparison to the hotels which have led to an increase in their rental demands.
Consequently, due to this huge demand, there will be a higher occupancy which in turn will lower the risk of vacancy while increasing the rate of returns on your investment.
However, there is a catch in it, if you want to invest in a short-term rental commercial property, then you must look for areas which have high demands for short-term rentals.
Invest in REITs
Before you get into any sort of confusion, let me make it clear to you. The REITs stands for Real Estate Investment Trusts. Now, these are organizations that own, manage and represent large real estate properties.
The primary concern of every person investing in the commercial real estate properties is the risks associated with investing in this sector. This is a very genuine cause but when you are investing through REITs, then it offers you a tremendous advantage in the form of lowering the risks associated with the commercial properties.
Investing in REITs is a great way to monetize as commercial real estate investments appreciate about 4.9% over inflation and your investment will also be secure as investing through REITs lowers the risks significantly.
Leasing commercial real estate
If you are looking for ways to monetize from your commercial real estate property, then you must consider leasing the property. With the rapid growth so many companies and new startups, there is a huge demand for commercial space and you can cash in on these demands.
Thus, leasing your commercial real estate property will be very profitable as the commission you receive in the commercial real estate is very high in comparison to the residential properties. Furthermore, the lease period in the commercial real estate sector is for 5 years or longer and you can demand a portion of business profit as commission.
However, the competition in the commercial real estate sector is very tough and in order to succeed, you must be proactive in pursuing and closing deals.

Fixing and flipping properties
When you are looking for ways to monetize from commercial real estate property, then you must also consider fixing and flipping houses. Moreover, this is an excellent short-term real estate investment strategy you can adopt.
Nowadays, this fixing and flipping strategy is widely practiced by many real estate investors. However, you must search for undervalued properties that are in the need for a renovation and then you can renovate and sell these properties at a higher price to garner maximum profit.
Finally
The above-mentioned factors will definitely help you in monetizing from a commercial real estate property. Besides these factors, there are numerous other ways to monetize from a commercial property. However, in order to achieve success in the commercial real estate investment business, you must also have a proper understanding of the market.
