Ways to Monetize From a Commercial Real Estate Property

Category: Others/ Misc

Presentation Description

The commercial real estate sector is witnessing a phenomenal growth and many people are getting attracted towards investing in this lucrative business. However, most of the people think that they need a substantial capital to invest in commercial real estate property. Well, there are several ways to monetize from a commercial property. Go through the slide to know about these methods through which you can monetize from commercial properties.


Presentation Transcript


Ways to Monetize From a Commercial Real Estate Property


The commercial real estate has made more money than any other sector in the history of time. But people are still skeptical about investing in them.


People who are new to the business of commercial real estate investments have a got a notion that they require a huge capital to start with their business.


However, this is not completely true because you can make money in real estate even if you are just starting your venture.


Here are the ways through which you can monetize from a commercial real estate property. Invest in REITs Invest in short term rentals Lease commercial real estate


Invest in REITs


The real estate investment trusts are organizations that own, manage and represent large real estate portfolios.


When you are investing in a REIT, it offers you a tremendous advantage in the form of lowering the risks associated with the real estate market.


The rate of interest for residential real estate investment increases by about 4.1% over inflation & commercial real estate investments appreciate about 4.9% over inflation.


The lower risks and low correlation together means that REITs are better placed as a means of investing in the commercial real estate.


Invest in short term rentals


Thanks to globalization, sharing economy startups are making huge progress and commercial real estate investors are looking for opportunities to invest in short-term rentals.


People or particularly travelers prefer alternative accommodation to hotels which increases the rental demands for such properties.


This increased demand leads to higher occupancy and lowers the risk of vacancy while increasing the rate of returns on your investment.


If you want to invest in a great short-term rental commercial property, then you need to pay more attention to areas with high demands for short-term rentals.


Lease commercial real estate


With the rise of so many companies and new startups, the demand for office and commercial space is increasing day-by-day.


Therefore, leasing commercial real estate is very profitable as the commissions in the commercial real estate are very high in comparison to residential properties.


Moreover, as commercial real estate lease period is more than 5 years or longer, you can demand a portion of business profit as your commission.


However, as the competition in the commercial real estate is very tough, you should have the ability to actively pursue & close deals.




Moreover, if you are providing your tenants with some additional amenities, then you can charge them for that which will earn you extra money.


The above-mentioned factors are some of the ways through which you can monetize from a commercial real estate.


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