Archive for month: January, 2023

Interested in buying or selling a Drugstore? When the goal is growing an investment portfolio with specific properties, you can’t trust a typical real estate agency to walk you through the process. SIG is a commercial real estate brokerage firm with a wealth of experience helping clients find, secure, and purchase properties to round out their investment portfolio. Check out our newest drugstore listings to hit the market.

Last week at America’s Lodging Investment Summit in both private meetings and on the main stage experts were optimistic and even bullish, referring to hotels as “the golden child” of commercial real estate asset classes. The forecast for hotel investments in the near future looks promising as the economy stabilizes and people are eager to travel. The industry is expected to continue to present opportunities for investors interested in hospitality commercial real estate buildings. 

Key Reasons to Add Hotels to Investment Portfolio

• Opportunities for Quality Investment: The hospitality industry offers some of the best opportunities to invest in real estate, as it allows investors to diversify their portfolios. In fact, hotels are among the best commercial properties to invest in, especially because of the hopeful prediction for the industry in 2023.
• High Return: The high yield return that comes with this kind of real estate investment is the main factor that attracts most hotel investors. The revenue generated from investing in hotels is primarily realized from the operating cash flow. Therefore, it’s crucial to have a skilled management team in place to help balance hospitality-associated risks. Successfully handling these risks, however, allows for even higher returns on investments.
• Tax Efficiency: Another important advantage of investing in hotels is the tax benefits. Investing in commercial real estate is one of the most tax-efficient methods of investment. Investing in hospitality properties combines the core benefits of investing in real estate into a centralized property. Investing in hotels can reduce your tax liability, stemming from equity expansion, depreciation, and tax-deferred exchanges in commercial real estate.
• Community Impact and Brand Awareness:  To run a hotel effectively, a lot of hands have to be hired, as labor consists of almost half of the running costs of a hotel. A majority of the employees would mostly likely come from the local neighborhood, creating a significant job-creating impact on the community’s economy. Being actively involved in providing steady employment and developing a community establishes a positive outlook in the public’s eyes. Any business that invests in such will not only be impacting the community, but will also create a positive brand awareness.

Common Ways to Invest in Hotels

Buying hotel property is likely the most straightforward way of investing in hotels. Hotels come in different styles, sizes, and affordability which invites flexibility to find a hotel property that meets your investment criteria. Below are the most common ways to invest in hotels.

• New Hotel Construction Projects
• Hotel Renovation
• Hotel Franchise
• Hotel Refinancing
• Hotel REITs

Are you looking for commercial property investment opportunities or need help investing in commercial real estate? Sands Investment Group is the right place to be. We are a commercial real estate brokerage firm with years of experience buying and selling investment properties. Visit our website today to learn more about our expert investment advisors and how they can help.

One of the best ways to build wealth and meet long-term financial objectives is by investing in real estate.  Sands Investment Group has the expertise to help you build an investment portfolio to meet your financial goals. The commercial real estate industry is an excellent place to invest, offering consistent solid ROI.  This step is crucial in increasing their chances of better returns and greater long-term profitability.

What is Diversification

Diversification is the process of spreading out risk across your investment portfolio. An investor can acquire accounts in several asset classes to balance the risk of a complete loss. If one investment does poorly, diversification provides an opportunity for the investor to have other profitable assets to draw on.

4 Ways to Diversify Your Investment Portfolio

Like every type of investment, several methods exist for diversifying investment portfolios. An easy way to diversify CRE investments is by investing in various asset types and classes. For instance, an investor can invest in a residential rental property, a real estate investment trust, and a piece of commercial real estate. Investors can also invest in Class A, B, and C commercial properties as each class has pros and cons (we discuss this in further detail in an upcoming blog post).

Benefits and risks exist for each type and class of commercial building. Diversification helps the investor balance their risk. Other ways investors can diversify their commercial real estate investments include the following:

1. Diversify through several transaction sponsors
2. Using different commercial real estate investment strategies
3. Hold Time (Including long-term and short-term investments in their portfolio)
4. Diversification through locations

5 Reasons to Diversify Your Investment Portfolio

The most common reason is to balance the risk involved in their investment. Yet, there are several reasons investors diversify their commercial real estate investment portfolio.

1. Immunity Against Stocks Fluctuations
   Investors who have money in stocks should be aware that a decline in the market values of their investments can cause a domino effect. However, commercial real estate investments are rarely affected by stock market fluctuations. When the value of their other equities declines, solid commercial real estate investments help to mitigate the effect on their portfolio.
2. Tax Benefits
   A commercial real estate investor may profit from a variety of tax advantages. Taxes on cash distributions may be sheltered or postponed by deductions for things like interest expense and depreciation. For instance, the current cash flow will mostly be lower than the total interest expense and depreciation costs, resulting in a return like a tax-free bond.
3. Hedge Against Inflation
   Fortunately for investment, commercial real estate rarely sees impacts from inflation. According to statistics, the inflation in 2008 was the only time that affected the real estate industry negatively. This is due to the consistently high demand for the commercial real estate industry. Demand will increase as long as people need these properties for their businesses. So, CRE investments offer a hedge against inflation.
4. Passive Income
   Investors can earn passive income from their commercial real estate investment without stress. They can even earn more if they work with reputable commercial real estate companies. Their property manager will handle all aspects of maintaining the property while steady income continues to flow to the investor.
5. Access to a Variety of Investment Types
   When investors diversify their portfolios, they have access to various types of properties. Each of these properties adds additional value to their portfolio while simultaneously protecting their other investments.

Do you need help diversifying your investment portfolio? Don’t hesitate to contact us at Sands Investment Group. We are a reliable commercial real estate brokerage company skilled in buying and selling investment properties. We sell properties for individuals, companies, and other institutions in the United States. Contact us today or visit our website to learn more about our services.

What is a Medical Office Building?

Often located near hospitals or on hospital campuses, medical office buildings (MOB’s) are a type of commercial real estate building that falls under the office asset class. They differ from traditional offices because of the building requirements needed to satisfy the needs of healthcare facilities with features intended specifically for use by physicians and other healthcare personnel such as waiting, exam and operating rooms. MOB’s are typically built with considerations for superior soundproofing for doctor-patient confidentiality, advanced air ventilation standards and have special requirements around parking and ADA accessibility.

3 Reasons You Should Invest In Medical Office Buildings?

Medical office buildings are seen as a lower risk commercial real estate investment for many reasons.

1. Healthcare is a fundamental human need that will not go away nor diminish. People will continue to need medical attention regardless of their financial situation. The COVID-19 pandemic has shown how resilient the industry is. This is demonstrated by the sector’s robust rental income, which has remained over 95% for the last two years. Most MOB renters were able to pay their rent on time as patients continued to seek treatment despite the economy. While elective treatments could be postponed, those who are unwell or require urgent medical care will still need to visit the hospital whether the stock market is rising or falling.
2. Forecasted increase in demand. Due to the large size of the baby boomer generation individuals over the age of 65 will increase by 73 percent between 2010 and 2030. One in five Americans will be a senior citizen. Easier access to medical care will be critical for the US’s aging population. People tend to visit the hospital more the closer they get to retirement. Senior citizens typically visit a doctor ten times more often than those of a younger age. These increased medical needs create a higher demand for more medical offices building locations specifically close to suburban areas and neighborhoods.
3. History of strong performance. If you take a look at the top 50 MOB markets in the US, transaction volume has grown from $18.2B to $24.5B in the last quarter alone, vacancy rates have fallen 40 basis points in the first half of 2022 to 8% and transaction volume has also increased by 79.2% from 2021, setting yet another record for the sector. Higher prices don’t always mean higher rents and having a trusted investment advisor who is familiar with these markets is important in order to avoid investment deals with weaker cash flows. If you know where to look, medical office properties in specific markets provide a solid tenant mix that will yield long-term value for investors.

Learn More With Sands Investment Group

If you want to invest in medical office buildings, you can trust that Sands Investment Group’s specialized Medical Office Building team will provide top notch advice. We are a commercial real estate brokerage firm specializing in purchasing and selling commercial investment properties for private investors and organizations throughout the United States. Contact us today to learn more about our services.

The market is shifting – what now? Despite the continuing rise in interest rates and the uncertain effects it will have on the economy, we believe certain sectors and markets are uniquely suited to thrive. You just need to know where to look. Read more →