4 Benefits to Owning Commercial Real Estate
Nicholas Dunlap, CPM, is the Vice President of Dunlap Property Group, a full service real estate investment & management firm headquartered in Fullerton, California. You can read his outlook on business and investing at his blog.
While some investors strategically amass their real estate investment portfolios, others enter into the arena accidentally or perhaps unintentionally. And whether you are a seasoned investor who has weathered the storms of multiple real estate cycles or the accidental landlord who has recently inherited a piece of property, there are four benefits to owning commercial real estate that benefit you both.
Everyone knows that it’s wise to own commercial real estate and sure, there are the two obvious reasons: the potential for cash flow and equity buildup. But equally if not more important are the two lesser-known benefits of tax shelter and the hedge against inflation that real estate can provide. Combined, these four benefits far outweigh those of any other investment vehicle in the marketplace.
As I refer to commercial real estate herein, I am speaking of multifamily, retail, office, self-storage and commercial property types. Whether you have 1 tenant or 100 tenants, your commercial property should generate income. The aforementioned benefits are those associated with income property so it should be known that these benefits would also apply to a piece of residential property, like a condominium or SFR were it rented out to tenants. Whether you start small and rent out a house, participate in a group real estate investment or acquire a commercial property on your own, you will want to be familiar with these benefits to enhance the investment experience and ensure the optimum performance of your portfolio.
Hear more from Mr. Dunlap at the IREM Fall Leadership Conference on Thursday, October 13 at 4:00pm when he participates in a panel discussion “Tales from the Front: An Upfront and Honest Discussion on Starting Your Career.”