Commercial property, Crowdfunding, EB-5

Commercial Real Estate in NY


Commercial Real Estate in NY

Making the leap from residential into commercial real estate may be the right move for many investors seeking a larger return on their investments. If you’re ready to venture into commercial real estate, business is booming in New York.

Commercial properties may offer more financial reward than residential properties. With any investment, there are potential risks.

What does the typical commercial investment look like? Commercial properties may include apartment, office or industrial buildings, and warehouses. Many buildings may have a mixed use such as apartments combined with retail or office space.

A quick overview of the benefits of making an investment in a commercial property includes multiple factors. Commercial investments typically generate an annual return off the purchase price of between 6% and 12%. Retail tenants have a vested interest in maintaining both their store and professional relationship with the landlord due to the potential impact on their business. Commercial investments may also include triple net leases which places the property expenses on the lessee.

Commercial investments have a downside. These investments may have a higher initial capital requirement, and require a larger time commitment due to the management of multiple leases. Commercial properties also require licensed professional maintenance and may be large enough to consider the added expense of professional management services. All public buildings have more visitors and may include the potential risk of accidents, mechanical breakdowns, and vandalism.

Commercial investments in Manhattan may be acquired at a low capitalization rate, but the sales market is active and very competitive. Many sellers point to projected increase in rent as incentive for potential buyers.

The market in Brooklyn may provide the potential investor with multiple opportunities. Growth in the area is being driven by new developments, and Mayor de Blasio is addressing transportation needs.

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Commercial real estate in New York, Invest in New York, EB-5 opportunities, New York investment as an overseas buyer