It is worth investing in commercial premises

One of the safest forms of investing capital is investing in commercial real estates intended for business operations: in commercial and service premises, office buildings and small industrial investments. This way of investing is more profitable than buying apartments for rent. In order to facilitate investors’ investment process and connect interested parties, commercial real estate offices have been established. The company specializing in the intermediation of such real estate is the Gdańsk office of Higasa Nieruchomości sp. Z o.o.

How do you make money on the business premises market?

Commercial real estate is increasingly being acquired in order to earn profits in the form of rental income. It is a good way to locate savings, and the investment guarantees passive income. However, one must take into account that the return on investment will not be expressive, although the profitability of such real estate is very high. – Average returns on invested capital range from 7 to 10 percent. This is more than in the case of investments in residential premises, where you can expect profitability in the amount of 4-5 percent.

Where to start?

Prices for business premises with a small area start at 500,000. zł. If you buy a flat rented by popular shopping chains, such as drugstores or discount stores, you must dispose of them capital in the amount of PLN 2.5 million. Until recently, the initial capital of investments on the commercial market was higher than on the housing market, but today there are other investment opportunities for people with smaller assets. One of them is the purchase of shares in small retail parks. We support our clients with this type of rentier solutions.

Benefits of owning a commercial property

A commercial property is less burdensome to use for the owner than a dwelling. Often the tenant with his own strength adapts it to his needs, he decides about its arrangement, decor. Most often, the tenant bears the majority (apart from major repairs) costs of repairing defects that arose during the operation of the premises. Lease agreements are concluded for periods from 5 to 15 years, which translates into stability and security of investment income. And what if the owner bought the property wants to sell with the tenant? Under the provisions of the Civil Code, only one party to the contract changes at the time the property is transferred to the new purchaser, but the conditions remain the same.

Location

In investing in commercial real estate, a good location is a good thing. It is worth paying attention to the premises located in the city centers, at the main, busy streets, in renovated tenements, where luxury boutiques from luxury brands are eager to locate. However, nowadays the city center is not certain that the purchased building will enjoy great interest from the tenants. Often, locations outside of the city center are much better, where the tenants are often food and discount chains. It is important that the access to the property was not cumbersome, there were parking spaces or public transport stops.