Most of the investors think about stocks and forex trading when they want to invest. However, these are traditional investment opportunities which have been used since time in memorial. But as the market is progressing, you should also evolve in your investment and pick up the current trends that are pearls only that many investors have not seen them. This is what makes the difference between the rich and the poor; taking the most available opportunity at hand and investing according to the waves of the market.
According to an established financial expert Christopher Linkas, one of the pearl to drain your money into is commercial real estate. If you are ignoring this venture, you’re doing yourself a great injustice. That’s why he is giving you some critical advice about the commercial real estate, a field he is well versed with as an investor in it, to make sure you make the best out of it. Let’s look at Christopher Linkas’ advice.
The commercial real estate is an investment in property that is specifically leased out and used for business purposes. They range from shopping malls, shops, gas stations, office spaces, restaurants, stores and even hotels. This is one of the main types of real estate besides residential and industrial real estate.
When it comes to commercial property leasing, many businesses especially huge businesses tend to take longer leases but mostly it ranges from 1-10 years. They can be single-net, double-net, triple-net and gross lease. All of these types of lease basically are according to the property taxes, insurance, and maintenance and whether it is the tenant or the landlord is responsible.
Commercial Real Estate can be classified as Class A, B and C representing most modern, older and oldest respectively. According to Christopher Linkas and various firms like Colliers International, the field is still healthy and a very fertile ground to invest in. Investing in the commercial real estate is a good way to shield your investment form the volatility of various stocks.
Any sophisticated investor who wants some challenge should invest in this high-risk and high rewarding investment. Always consider supply and demand when considering this commercial real estate as an investment. You should be very cautious when it comes to buying properties but if you don’t have enough capital you can get the property through REITs and CMBS. Despite the tenant turnover and taxes, this investment still remains the most lucrative according to Christopher Linkas.