Is Having Commercial Real Estate A Viable Option?

We live in a digital era where a couple of keystrokes are much quicker than going to a store. Will your business profit from having commercial real estate?

For the last couple of years, the market has seen a boom of entrepreneurs and various startup companies. According to data from the Kauffman Index, there has been a steady rise of startups since 2011. With constant upgrades and new digital merchant software on the internet already, is it a good idea to have commercial real estate for your business?

In a perfect world, we would all have our own businesses. Stores on the main street in a bustling downtown area. As great as this may sound not all entrepreneurs need to have commercial real estate. Of course, there are certain businesses that you need to go to bakeries, restaurants, etc. But most of the new companies that are here now are best represented on a digital platform.

In fact, most companies that are in the market would greatly benefit without having commercial real estate. That means no monthly bills or rent. Having commercial real estate can also mean less money in your pocket. For some business owners taking out a loan on the property, they want to use. Depending on the type of the loan you may have to commit for the three to five years on a property that may or may not give you a return on your money.

Are there any advantages to having commercial real estate?

Short answer: of course there are. First and foremost, the feeling you get from owning a place that your business calls home is un-measurable. Having a physical place to call your shop or store gives you the confidence to go out and search for more customers. You build different connections that could not be made online. You also get that face to face interaction with your clientele; in turn, this helps your business thrive. Personal relationships are good for business. The relationships you build are for tomorrow, not for today.

Depending on your property you could potentially get a great appreciation of your assets. Things such as making the proper managerial decisions can help the value of your property increase exponentially.  Doing things like making renovations help your business grow in value over time. Whether it is replacing the sign or an awning, or you knock out a wall in your space to make it larger, every bit counts.

Maybe you want to rent out the space instead of using it for your own business. This means you have full control over the tenants you want using it. You also have the power to create rules based on what type of image you want to represent. Having investor control can also help with annual fees. For example, if you manage your commercial real estate you can charge a management fee that your tenant would have to pay for.

Having great commercial real estate also means great publicity

Publicity is also one of the biggest reasons you might consider have some commercial realestate. We are constantly bombarded with new ideas and businesses that try their best to catch the eye of potential clients. There is no telling how many different advertisements you see online a day for a new business. Having a storefront or even a small hole in the wall makes you tangible. Customers can go in and see the jewelry that you make. They can check to see if it fits them correctly. Customers can go into your boutique and feel the type of fabric that you have; they can be correctly measured for one of your designs they like. 

Alas, you have to judge based on your needs. Would you fair better on a digital platform, or can you benefit from having commercial real estate?

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:      (512) 516-1177 
Dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave |Austin | Texas | 78701    

   

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.