Ways to Monetize From a Commercial Real Estate Property

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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.

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Presentation Transcript

Slide1:

Ways to Monetize From a Commercial Real Estate Property

Slide2:

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.

Slide3:

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.

Slide4:

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

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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

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Invest in REITs

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

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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.

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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.

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

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Invest in short term rentals

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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.

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

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

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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.

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Lease commercial real estate

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

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

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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.

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

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Conclusion

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

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

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