Real Estate, just like anything else, also has its own disadvantages and advantages. With that, let us learn about these with Ofir Ventura but first, let’s have a brief discussion on who is Ofir Ventura! So, Ofir Ventura is a well-known individual when it comes to real estate, business, and NFT. He has been in the field for several years now, and he shares his knowledge and experiences with people to inspire them to engage with the field. Advantages of Commercial Real Estate The very first advantage of commercial real estate is the attractive rates of leasing. In areas with limited construction amounts due to law and land, higher and much more impressive returns for commercial real estate are expected. There are also considerable cash flows per month. Another thing is the lower rate of rent in industrial buildings that have decreased overhead costs compared to those office towers. Next, there are benefits to gain from the commercial real estate from the longer lease contracts than in residential real estate tenants. This makes way for more amounts to hold as cash flow stability, but the tenants must have long-term contracts to occupy the said spaces. Another thing, aside from being a good and stable income source, there are potentialities for capital appreciation in commercial real estate. Still, it must be due to the up-to-date and well-maintained property condition. Disadvantages of Commercial Real Estate For Ofir, the disadvantages of commercial real estate start from the regulations and rules that deter investors from commercial properties. Included here are the mechanics of purchasing, taxes, and responsibilities for maintenance to ensure that a commercial property has legalese layers. These are the requirements that can be shifted depending on the zoning, size, industry, country, state, and more of other designations. So, it is essential for investors to know specialized facts or the payroll of those who know how to do it. Another disadvantage is the increased risk of tenant turnover relevant to the economic status as there are multiple cases of unexpected closures of retail that leave vacant properties behind without or only little notice. Overall, these are only some of the advantages and disadvantages of commercial real estate shared by Ofir that everyone should know!
5 Comments
9/27/2022 07:06:51 am
It's great that you talked about how there are potentialities for capital appreciation in commercial real estate. I was reading a real estate magazine last night and I learned quite a bit about commercial properties. From what I gathered, it seems there are commercial real estate companies that could help clients too.
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12/16/2022 10:24:01 pm
Thanks for your information . i am read your article i am very impressive.
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1/28/2023 06:02:41 am
I was captured when you discussed that the regulations and rules can discourage commercial real estate investors. My friend wants to invest in a commercial place. I should advise him to look for a contractor that specializes in commercial real estate.
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9/11/2023 03:48:12 am
Excellent article! It provided valuable insights into the ever-evolving real estate market, offering practical advice for both buyers and sellers. The author's expertise shines through, making complex concepts easy to understand
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10/5/2023 07:23:18 am
I can't thank you enough for the valuable information you've provided in this blog. Keep up the excellent work!
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