Investing in a New Commercial Building: Pros and Cons
A commercial real estate investment is a big decisions, but deciding between resale or a new commercial building requires additional considerations. Here are a few pros and cons that are associated with investing in a new commercial building.
Higher ROI: a commercial building could fetch a lot of money – especially if you are comparing the investment to single family homes.
Professional Clients: chances are, you will be dealing with business owners or corporations who treat their business as professionals. You won’t be dealing with emotional homeowners, but rather professionals who understand how to build a strong business-to-business relationship.
Slower Return on Investment: there are plenty of other investment options that have a quicker ROI than a new commercial building. We differ back to the first pro on our list – a higher ROI might be worth the wait.
Unpredictable Future: there is no crystal ball when it comes to commercial investing. Things could go wrong, the market could tank, the government could impose higher taxes. All risks that need to be taken into consideration before investing in a new commercial building.
For more than forty years, the Knipp name has been helping landlords and investors with their real estate development needs, and navigating the commercial real estate market with ease. We invite you to visit us online at www.KnippCommerical.com and view our online portfolio.
Whether you are looking to renovate your office space or break ground on a commercial real estate project, our team of experienced experts are ready to help you with all your construction and real estate development needs. We look forward to hearing from you soon!