Once in Lifetime Chance to Buy Profitable Commercial Property in 2021

Commercial properties are immovable assets that are used for investment or rental purposes. In other words, they are land or buildings that are used for commercial purposes rather than residential. Shopping malls, office buildings, retail stores, hotels, and resorts are all examples of this. Commercial property investment provides higher returns than residential property investment.

While there are several advantages that one can get by investing in commercial properties, there are a few that stand out. Some of which are listed below:

Stability of Income
It is a safe investment since the lease term ranges from three to ten years.

Good Return on Investment
Guaranteed returns as compared to residential properties, which yield 5–10%.

Less Risk
Because it is such a large undertaking, there is less competition in the market, which reduces the risk.

Variety Available
It offers a wide range of options, including shopping or retail, office, apartments, and industrial space.

Owner’s Control
Major control over lease period, revaluation, tenant category, renovation, or possibly no furnishing cost of raw unit provided.

Types of profitable commercial properties to look out for:

Coworking Space
Despite a slowdown in development across the nation, a study done in the previous year indicates that the coworking industry will emerge intact and strong after the COVID-19 pandemic. As remote work becomes more common, many people are expected to work from coworking spaces. Many markets around the world have seen an increase in demand for flexible workspace, especially in the short term. The Instant Group believes that flexible workspace supply will increase by more than 21% in 2021. In 2020, the coworking space has nearly doubled to 86 million square feet as compared to that in 2017. Coworking space has nearly doubled as a percentage of overall office space increasing from 1.1% in 2017 to 2.1% in 2020. It is forecasted the demand is only going to increase for coworking spaces.

Food Chain/Cafes
The restaurant industry has been a direct victim of the pandemic, as the strict restrictions and fear of going out led to a huge decrease in dine-in customers for restaurants, but it has shown remarkable versatility in adapting to the modern realities. Many companies have extended their service offerings such as delivery and take-outs, as well as pop-up grocery stores. Some of these solutions are so successful that they will be available even after the pandemic is over. Even people crave the feeling of being able to move freely and the feeling ‘normal’ that we were so used to. As and when the pandemic will be over, these businesses keeping in line with all the safety and hygiene measures will slowly but steadily rise again as the restrictions will be eased and people will be able to move freely again.

Industrial Sector
Industrial buildings, which are often located outside of urban centers, particularly along major transportation routes, house industrial operations for a variety of tenants. Low-rise buildings may be clustered together to form industrial parks. The properties are divided into the following categories.

Manufacturing Unit: These structures are highly customized and house the machinery needed by manufacturers to operate and produce products and services.

Warehouse: There are typically broad assets that are used as distribution centers.

Commercial Land: This is land that is typically allocated for commercial development. Example: Office buildings, Factories, etc.

Medical Shops/Pharmacy
Given the pandemic, one business that has thrived even in these testing times is the pharmaceutical and medical industry. Investing in these would definitely be profitable. Even when the pandemic subsides, people need medicines all year round, and hence, this is a business that shall never cease to work. Therefore, it would be a profitable decision to invest in a pharmacy for sale or a medical shop for sale.

The Perfect Time to Invest in Commercial Property
Though the times are uncertain, due to the reasons discussed above, this is the perfect time to invest in pre-leased commercial land and properties for sale. The world will get back on track and if the investment is made at the right time in these commercial properties, one can expect a sure shot profitable return in the future.