Investing in Commercial Real Estate

Are you interested in investing in commercial real estate? Investing can be crucial to an individual’s financial goals by offering financial security now and in the future. Investing can also allow you to increase your wealth over time as the value of the product increases. With the help of an advisor, you can begin building upon your real estate portfolio. Commercial real estate can offer a passive income with a premium return. 

Owning real estate assets may also allow for resale potential if the situation arises. If you are starting your commercial real estate investment journey, Sands Investment Group has the resources to help you confidently make investment decisions.

What is Commercial Real Estate?

Commercial real estate is different from its counterpart in residential real estate. Commercial real estate, or commercial property, is space used to conduct business, whereas residential real estate is used for living purposes. The commercial real estate industry is intended to generate a profit whether it be from capital gains or rental income. 

To invest in commercial real estate, an investment advisor can give you an overview of each category’s performance, supply, and demand. Then, you can choose what type of commercial real estate works best for you.

Types of Commercial Real Estate:

Commercial real estate can be placed in different categories based on the type of business residing in the space. You may also consider what the purpose of the property is when categorizing. These categories include multifamily, office, retail, industrial, hospitality, and special use. 

At Sands Investment Group, we specialize in the following commercial real estate product types:

• Automotive
• Convenience Store
• Dollar Store
• Drugstore
• Early Education
• Industrial
• Medical
• Office
• Owner-User
• Restaurant
• Retail / Big Box
• Self Storage
• Shopping Centers

Is it Sensible For Me to Invest in Commercial Real Estate?

Many people think of investments as stocks, bonds, mutual funds, or ETFs. However, investments can also be in commercial real estate.  There are numerous types of investments you can capitalize on in the realm of commercial real estate, and ultimately diversification is the key to managing your investment risk. However, successful acquisitions can vary due to multiple factors such as the economy and demographics. 

On the other hand, commercial real estate has proved to be a reliable investment during many market changes. To be successful with this choice of investment, you must set goals and decide what a commercial real estate investment could provide. 

What Type of Investor Are You?

Planning for your financial future entails deciding what the different choices will look like. During this time, you must analyze prior financial statements and determine what its current financial performance has the capacity to obtain. Then, when making investment decisions, you can take the time to evaluate time, risk, and value. This provides confidence in knowing that they will fit into your goals and future plans. Factors such as age, objectives, and tolerance to risk can be essential to what type of investor you are. 

After you determine the type of investor you are, it can help clarify how and why you should invest. Even if you have solid investments in place, you may find it wise to continue building your portfolio to meet financial goals. No two investment portfolios are identical. Investors can choose what options are best suited to their situation. 

Pros and Cons of Commercial Real Estate:

✓ Provide solid and predictable returns on investment over time.

X If not researched, potential risks of the market situation, such as oversupply.

✓ Provide a tangible asset.

X Can miss the property’s history of sales if not enough research is performed.

✓ Builds equity.

X Market cycles are constantly changing and do not last.

✓ Tax benefits from owning commercial real estate.

X Requires a commitment of time to upkeep.

✓ Commercial real estate assets have leverage.

X Maintenance costs may require professional help.

✓ Provide cash flow and more income.

X Requires a more significant initial investment.

Interested in Learning More About This Investment?

If you are interested in investing in commercial real estate, get in touch with a Sands Investment Group advisor to start your journey. Check out our current listings to see which commercial real estate investment would fit your needs. The opportunity you’ve been looking for might be one click away.  To learn more, get in touch with an expert today by calling 844.4.SIG.NNN or sending us an email at info@SIGnnn.com. 

Thinking of expanding your portfolio by investing in the car wash industry? Owning a car wash can be a profitable addition to your work. Many car washes are owned by small business owners who started their investment journey. In fact, only 10% of car washes are not owned by small business owners. It may be time to invest in the car wash industry and all the opportunities it has to offer. Sands Investment Group has the resources to help aid you in your purchase decision on why you should invest in the car wash industry. 

Reasons To Invest:

With summer just around the corner, the car wash industry will be in high demand.  According to onedesk, 66% of car owners who live in the U.S. will get their vehicle washed anywhere from one to two times every month. Car owners have decreased their use of at-home washes and have rather utilized car washing facilities. 

While there are factors that dictate your income such as location and size, you will be investing in a market that is highly demanded by consumers. Location of your potential car wash is an important factor in determining the pros and cons of a car wash ownership. Different types of car washes will also require different finances such as down payments and space. Investing in the car wash industry is appropriate when it meets your goals, but not if you would be uncomfortable with its upkeep and par value. 

While there are many factors to consider in your purchasing decisions, here at some potential outcomes when a car wash is run correctly:

Increase Your Income

Owning a car wash gives you an increased revenue as there is a high volume of customers. According to Hedges & Company, 2022 is estimated to have 289.5 million registered cars in the United States. 20,000 cars washed in one year can bring you an average revenue of $139,000 alone. On average, car washes charge $15 dollars per car. This would not include additional add-ons that may be available. Investors can make a large profit off of the recurring income that the predictable consumer demand brings to the car wash industry.

Growth 

Owning a car wash will provide a safe and profitable investment. When car wash owners see the increased revenue, many decide to open other locations. They may add on a gas station for sale if space is allocated. According to Brandon Gaille, approximately 65% of car wash stations also dispense gasoline. This would also add new opportunities for growth and increased revenue within your investment. With this eagerness, you can create your own car wash brand on numerous sites. 

Added Real Estate Asset 

Owning a car wash also adds to your real estate portfolio. When owning this car wash real estate you are receiving a passive income but also a premium return. Owning this real estate asset also offers a resale potential. After making your decision to invest in a car wash, you can decide to sell the real estate/business down the road to fund your retirement or bring in more profit. 

How To Invest:

If you are interested in investing in the car wash industry you have two options. You may purchase an existing car wash or start from scratch. However, if you start from scratch, a SIG Car Wash advisor can help you complete the following steps:  

• Prepare a business plan: decide if investing is right for you. 
• Pick a car wash business type: full-service conveyer enterprises, express drive-through sites, and self-service establishments with bays. 
• Pick a location. 
• Check location for zoning and local regulations. 
• Cover financing needs: Paying in cash or using funding to cover the investment purchase, upgrades, and expenses up to at least one year. 

Consult A SIG Car Wash Advisor

Thinking of investing in the car wash industry? The investment opportunities hold limitless growth. Join SIG at The Car Wash Show in Nashville, TN on May: 5/9- 5/11. Become an attendee or make an appointment with a SIG member at the conference! We will be located in booth #556.

If you’re looking to invest in the car wash industry, get in touch with a SIG advisor. Our experts can help you find the right car wash property for your portfolio. SIG is home to experienced brokers that are designated experts in all areas of CRE, including car wash real estate.

Among its listings, Sands Investment Group offers several car washes that are guaranteed by a large company or a dominant regional operator. These car washes are set close to major roads and offer favorable demographics such as nearby retail stores, companies, and universities. They also offer long-term triple-net (NNN) leases of 15-20 years and attractive cap rates that range between 6.25%-7.5%. Contact the team by calling 844.4.SIG.NNN or check out our current car wash listings to get started with your car wash investment.

Healthcare real estate has been a growing asset over the last several years and it will continue to be a good place to invest based on expert opinion. Healthcare real estate assets include hospitals, medical centers, nursing facilities, and retirement homes. 

Why Invest in Healthcare Real Estate?

Healthcare is one of the most interesting spaces for private equity real estate investors. The success of this real estate is directly tied to the healthcare system.  If you’re looking for a solid real estate investment, it pays to look at healthcare REITs or real estate investment trusts.

Benefits

Healthcare REITs benefit from the massive and growing healthcare industry, one of the largest stock market sectors. While healthcare spending in the U.S. peaked at $3.8 trillion in 2019, it declined by 2% in 2020 due to the COVID-19 pandemic. However, it started growing again in 2021 and is on track to top $6 trillion by 2028.

Forecasts suggest the demand for healthcare-related real estate will continue growing. REITs are likely to benefit from steadily rising rental rates on existing properties. In addition, they should be able to develop new properties to meet the growing needs of the healthcare industry.

One of the drivers of the sector’s projected growth is the aging of the baby boom generation. The population of individuals over the age of 80 years old is expected to be one of the fastest-growing age groups through 2029. The increase in the ranks of the elderlyis predicted to  drive demand for senior housing and skilled nursing facilities. Such growth is likely to benefit healthcare REITs focused on those properties as they report higher occupancy levels, allowing them to raise their rates.

Risks

While healthcare REITs are less risky than other healthcare investments because of their generally stable rental income, they’re not without risk.

• Leverage risk: REITs borrow heavily to acquire and develop real estate. The debt reduces their financial flexibility during economic recessions.
• Interest rate risk: REITs are highly sensitive to changes in interest rates. Higher rates increase their cost of debt, given the sector’s use of leverage. In addition, higher interest rates give income-focused investors more investment options that offer an attractive income yield, such as government and corporate bonds, which can weigh on REIT stock prices.
• Oversupply risk: Healthcare REITs need to match their development plans with demand. Given the highly specialized nature of most healthcare facilities, REITs need to be careful not to build too much supply or it is likely that it will sit vacant.
• Tenant risk: Healthcare REITs rely on their tenants to pay rent and manage senior living facilities effectively. However, healthcare margins are relatively thin, which can cause operators to run into financial trouble if they’re not vigilant. That can affect rental receipts and force a healthcare REIT to find a new tenant for their facility if an operator can’t meet its financial obligations.
• Pandemic/flu season risk: Virus outbreaks can significantly affect healthcare REITs, especially those focused on senior housing. This can cause occupancy to decline as more patients check out than are admitted.

How to Invest in Healthcare Real Estate

Healthcare REITs

Healthcare REITs own, operate, manage, acquire, and develop healthcare-related real estate. These facilities include senior living communities, hospitals, medical offices, outpatient facilities, life science innovation and research properties, and skilled nursing facilities. Medical commercial real estate is often called MedTail, short for medical retail.

Most healthcare REITs make money by leasing space in their facilities to tenants such as healthcare systems, primarily under triple net leases. This lease structure requires the tenant to cover maintenance, real estate taxes, and building insurance. The structure provides REITS with a very predictable stream of rental income, making them ideal stocks to invest in during a recession.

Some healthcare REITs also operate the facilities they own, such as senior living communities. They typically hire a third-party manager who earns a fee for managing the property’s day-to-day operations. The healthcare REIT generates net operating income from the fees paid on behalf of patients for their housing and any services provided. The income can vary due to fluctuations in occupancy levels and rates.

Consult a SIG Advisor

If you’re interested in healthcare real estate investment, get in touch with a SIG advisor. Our experts can help you find the right healthcare property for your portfolio. SIG is home to experienced brokers that are designated experts in all areas of CRE, including healthcare real estate.

 

Want to learn more? Call 844.4.SIG.NNN or contact us here to consult with a SIG advisor about growing your commercial real estate portfolio. 

Mixed-use zoning is a type of urban zoning that blends multiple types of properties that would fall into more than one standard zoning category. Mixed-use zoning is applied to places where residential, commercial, and industrial spaces are integrated. Often these developments are “walkable” or have pedestrian connections. Read more →

Whether you are brand new to CRE or a veteran investor, the time is going to come when you want to start growing your commercial real estate portfolio. Even if you have solid investments in place, it’s wise to look for ways to build your portfolio into one that will help you meet your financial goals.

No two investment portfolios are identical and investors typically choose different CRE asset types to put their money into. Real estate portfolios can include investments in real estate investment trusts (REITs), real estate mutual funds, or investment properties like office, retail, multifamily, or industrial space.

Tips for Growing Your Commercial Real Estate Portfolio

When growing your commercial real estate portfolio, there are several areas you should focus on. From finding the asset types that will serve you best all the way through deal negotiation, the following tips will be helpful as your CRE portfolio develops.

Setting Goals and Making Plans

The first step in building your CRE portfolio is to think about your financial goals. What do you want your investments to achieve? Are you looking for an additional source of monthly income to pay the bills? Do you want to work towards complete financial freedom and build a business based on CRE investments? Do you want to put away more money for your family and retirement? These are all valid goals that a good CRE investment portfolio can help you achieve.

Once you have set your financial goals, you can make a plan to build a portfolio that will serve your needs. Creating a real estate business plan with specific goals laid out will give you a roadmap to follow on your investment journey. The map may change, but having a starting point is essential. Consulting with an investment advisor specializing in commercial real estate is beneficial for making your CRE business plan.

Exploring Different CRE Asset Types

If you’re interested in growing your commercial real estate portfolio, keep an open mind about investing in different types of commercial properties. There are a lot of commercial properties out there, and not all of them will be right for your portfolio, but some will. The best type of property for your portfolio will depend on the market you’re in, how much money you have to invest, your timeline, and many other factors. That’s why we recommend consulting a commercial real estate advisor about different types of properties.

You will want to consider the type of income you want from your property as well as the CRE product type that will provide the best return on investment for you.

Types of Property Investment Income

One factor to take into account when you’re looking to build a strong CRE portfolio is the type of income you want from your property investment. There are two types of investment income: cash flow and capital gains (sometimes called capital growth). To build a strong portfolio, you might want to consider both types of investment income.

Capital Gains Investments

Capital gains investments are made with the goal of capitalizing on the long-term appreciation of a property. In simpler terms, you buy a property with the intention of keeping it for a period of time before selling it for a profit. The popular motto of “buy low and sell high” is the central idea of capital gains investing. ROI is usually higher in capital gains investment than it is in cash flow investment. However, it is riskier because there is more speculation involved and market fluctuations can make a big impact on success.

Capital gains investors are often called “flippers” and fall into two categories:

1. Investors who buy a property and flip it as-is: These investors buy on market speculation. They buy properties and don’t make any changes in anticipation that the market down the road will yield a profit when they sell the property.
2. Investors who buy, fix, and flip a property: These investors buy properties and invest time, money, and labor into improving the properties with the goal of using the upgrades to increase the value and selling price of the property.

Cash Flow Investments

Cash flow investments are based on the potential return on investment (ROI) the investment will yield on a regular basis. Rental properties in asset classes like office space, multifamily buildings, and self-storage facilities are examples of cash flow investments. Cash flow is your profit after collecting income, paying expenses, and reserving funds for future expenses or repairs.

Cash flow investments are usually long-term compared to capital gains investments. With a cash flow investment, you’re not purchasing the property with the intention of selling within a short span of time. When deciding whether or not a cash flow property is a good addition to your portfolio, keep these factors in mind:

• The rentability of the property and projected occupancy
• The expenses related to maintaining and/or improving the property
• The potential for property value appreciation

CRE Product Types

Commercial properties can also be put into different categories based on the type of business that uses the property, or what the purpose of the property is. These categories include multifamily, office, retail, industrial, hospitality, and special use. Sands Investment Group specializes in the following CRE product types:

• Automotive
• Convenience Store
• Dollar Store
• Drugstore
• Early Education
• Industrial
• Medical
• Office
• Owner-User
• Restaurant
• Retail
• Self Storage
• Strip Centers

Acquiring Assets

With your goals set and a plan in place, you can start building their portfolios by acquiring assets. The acquisition process includes:

• Studying Market Trends
• Evaluating Properties
• Analyzing Potential Income
• Calculating Expenses of Purchase
• Negotiating a Deal

Studying the market and looking at the properties that fit into your investment strategy are the beginning stages of the acquisition process. This groundwork is important for making the right choice, but there’s a lot more work involved. You may have found your dream property to add to your portfolio, but you need to analyze your potential income and calculate the expenses involved in purchasing the property before you can start negotiating a deal.

Getting a commercial property appraisal is an important part of the property evaluation process. No matter what your goals are with the purchase or sale of a property, an appraisal will be necessary. A commercial real estate appraisal helps to determine the value of a property. To learn about this step in the process, read our guide on What You Need to Know About a Commercial Real Estate Appraisal.

And of course, negotiating and closing the deal completes the acquisition process. Partnering with the right broker during your CRE purchase will help you negotiate the best deal possible for all parties involved. After a property is acquired and added to your portfolio, you can start considering your next move.

Balancing and Diversifying the Portfolio

As you are growing your commercial real estate portfolio, it’s important to take steps to balance and diversify the portfolio. As has been stated many times, you cannot avoid risk in the world of commercial real estate investment if you want to reap the rewards of profit. However, there is a line between taking risks and being reckless with your money. Diversifying your investments has the potential to strike a healthy balance between risk and reward.

Even when staying on top of commercial real estate trends, the market can be unpredictable and sometimes volatile. Having a balanced and diversified CRE portfolio can reduce the risk of loss or soften the blow if a certain asset class takes a hit in the market.

What Is Diversification?

When referring to investing as a whole (not just CRE investments), a diversified portfolio would include components like domestic and international stocks, bonds, short-term investments, mutual funds, and real estate investments.

Diversifying Commercial Real Estate Investment

Diversification means investing in different property types with unique risk-reward profiles. Investors can diversify their CRE portfolios in several ways, including:

• Investing in different asset types
• Investing in different asset classes
• Diversifying investments by geographical location or market
• Using multiple investment strategies and hold-times
• Mixing passive and active investments

Exploring different CRE product types is a great way to start the diversification process. You may also want to consider growing your commercial real estate portfolio with alternative investments. To learn more, read our guide to Diversifying Your Portfolio with Alternative Investments.

Choosing the right strategy for growing your commercial real estate portfolio will depend on economic and demographic cycles. An experienced commercial real estate advisor will be able to help you navigate the different types of properties and which would suit your CRE portfolio best.

Get in Touch with a SIG Advisor

If you’re interested in growing your commercial real estate portfolio, get in touch with a SIG advisor. Our experts are uniquely positioned to help you get the most out of your investments. We have brokers that are designated experts in each CRE product type.

Want to learn more? Call 844.4.SIG.NNN or contact us here to consult with a SIG advisor about growing your commercial real estate portfolio.

If you’ve read our post on Why You Should Consider a Childcare Asset for Your Next Net Lease Investment and want to learn more about early education property investments, you’ve come to the right place. We’re exploring more details about this asset class and providing crucial considerations for when you’re ready to make your next commercial real estate investment. Read more →

Commercial real estate investors and owners have faced a series of challenges due to the COVID-19 pandemic and those challenges will evolve. Nobody can predict the future, but we can get an idea of how things in 2022 will progress by looking at current CRE market trends.

While we can’t claim to be on the other side of the pandemic, the country is recovering. That means demographic and business trends will accelerate. When it comes to CRE investments, there will be an increased demand for certain assets as the year progresses. 

Savvy investors will consider CRE market trends when making decisions about where to put their money so they can take advantage of the more popular assets and how to look for opportunities among all asset classes.

CRE Market Trends to Watch

Here are 10 CRE market trends investors should watch for as we move into the Q2 of 2022 and look even further into the future.

1. Continued Market Recovery Post-COVID-19

The first CRE market trend to keep an eye on as 2022 progresses is the continued recovery of economic and CRE markets. That’s not to say everything will be on a constant upward slope. As current events affect prices, you can expect natural ups and downs. As we move further into 2022, we are getting closer to a “new normal” where the market will gain more stability and CRE investment opportunities will keep improving. There may be setbacks and flare-ups along the way, but trends indicate that they will be short-lived.

 

2. Evolving Retail Models

The way people shop has changed over time, which impacts retail property investment. During the early days of the pandemic, consumers were pushed to spend a lot more online. But now that people are routinely out-and-about again, consumers are returning to retail spaces for in-person shopping. That doesn’t mean online shopping will drop off. Sales have risen in both online and in-store channels, so consumers seem to want more of both types of shopping.

In-store sales are rebounding for retailers because shoppers want to see their buying options in person. Leading to reduced vacancy rates in brick-and-mortar retail spaces, good investment opportunities in the retail property sector will increase and capital for financing will be readily available.

 

3. Self-Storage as a Popular Asset

Self-storage is a very popular asset to invest in now. A large number of American households rent storage units and demand remains high during all phases of an economic cycle. That means occupancy rates are stable and revenue streams are steady. Investing in self-storage is advantageous because it is somewhat passive and requires less capital. Check out our post on why self-storage investment is a smart move for your portfolio for a more in-depth look at this CRE trend.

 

4. Continued Growth in the Multifamily Sector 

In 2021, multifamily investment performed very well. Investors can expect that to continue through 2022. According to Crexi, multifamily was the fastest-selling asset type in 2021. The average closing times reached 123 days in Q3 and the market should see increased demand in the next year.

Factors behind this CRE market trend are low supply in single-family homes due to construction limits, price competition along with household formation. The economy is growing, leading to the formation of new households looking for housing. Along with household formation, growth is being driven by people looking for quality multifamily housing with more space to accommodate growing families and working from home.

 

5. Increased Interest in Senior Housing

Senior living, skilled nursing, and residential health care facilities were heavily impacted by COVID-19. Infections limited move-ins and occupancy of those facilities dropped. However, occupancy rates started increasing at the end of 2021 and will continue to rise as a CRE market trend in 2022. Full recovery may not happen this year, but investors should start considering this asset class again.

 

6. Changes in Office Space

Due to the pandemic, there is an existential change in the way people view workspaces. Working from home shifted attitudes about working in an office, making some investors wary of office properties. But that doesn’t need to be the case. While working from home seems to be here to stay, it will be part of a flexible hybrid model that also includes in-office work. 

The office will once again be the hub of business activity as people split their time between remote and in-person workplaces. As this setup becomes more common, occupancy in office spaces will be steadier. Demand for flex space, coworking space, and turnkey office space will also create investment opportunities. Forbes predicts that employers will look for larger, cost-effective locations while also demanding spaces with nice amenities and flexibility.

 

7. More Mixed-Use Space and Adaptive Reuse 

Investments in hospitality, office, and retail spaces will be smart moves as recovery from the pandemic continues, but changes to properties in those sectors may provide opportunities that will add value to portfolios in the future. Mixed-use zoning and adaptive reuse will be CRE trends to keep an eye on going forward. For example, an office becoming a mixed-use space may yield impressive returns in the future as the market continues to change.

 

8. Investors with Cash In Hand

Many real estate investment firms and private equity investors have cash ready. Many investors are making faster decisions and looking to invest capital before the cost of borrowing increases too much. They will be looking to put money into the hot asset classes like self-storage and multifamily, but they will also look for other places to invest their stockpiled cash, in sectors such as hospitality and retail.

 

9. Supply-Chain Issues Impacting Industrial Development

Manufacturers, logistics companies, and retailers are all seeking solutions for supply chain issues. These issues have been plaguing businesses for a long time, but it has just recently caught up to the commercial real estate market. 

Transportation and insurance costs are rising and space near seaports is limited and in high demand. For those reasons, things are moving inland for people building new facilities and working on development projects for expansions. There will be an increase in industrial properties in population centers, and in close proximity to highways and airports. 

 

10. The Proptech Revolution Continues

Technology and software will continue to grow in importance in the commercial real estate world. Property technology (proptech) is vital to many aspects of CRE investments for both brokers and landlords. Software platforms and databases are used for managing deals and portfolios and aid in property management.

Proptech is the key to making things more customer-centered as tenants expect online platforms to streamline operations and improve their user experience.

However, it’s important to keep in mind that technology alone won’t yield success in the commercial real estate industry. An online platform or database will never replace the industry knowledge of an experienced broker. Using property technology to connect people and systems simply makes things more efficient, which drives revenue.

Work with an Experienced Broker

If you’re an investor looking to take advantage of the current CRE market trends and grow your portfolio, get in touch with a SIG advisor. Our experts are uniquely positioned to help you get the most out of your investment. We have brokers that are designated experts in each CRE product type so you can explore the current trends within each specific asset type.

Want to learn more? Call 844.4.SIG.NNN or contact us here to talk about working with our team.

Did you know that around 10% of households currently use a storage unit? The demand for storage space means that you might want to consider adding a self-storage investment to your portfolio. Compared to retail, hotel, and residential properties, self-storage properties have minimal management and lower capital expenditures.

Read more →

Investing can be an interesting and lucrative career – or even a side hustle or hobby – for many people. There are different ways to get into investing, but some of the most common include stocks, bonds, mutual funds, and real estate. After a volatile 2020 in traditional stock and bond markets, there is increased interest in alternative investments. Because it’s always a good idea to diversify a portfolio, many investors are looking at different opportunities for growth. First, let’s take a look at alternative investments. Then, let’s look at the different types of real estate investors are often interested in acquiring.  Read more →

Net lease real estate is attractive for conservative investors who are looking for long-term profits and benefits from their investment in a property. In addition to net lease opportunities on existing structures, there is another revenue stream you can explore for your portfolio-ground leases. Read more →

In commercial real estate, it can be hard to know the true value of a property. CRE can be challenging to navigate, especially when investors have a lot of properties, are in many industries, or have properties in a wide range of geographic areas. When an investor is looking to grow their portfolio by adding a new property or selling off one they currently hold, knowing the value going into any real estate transaction can be helpful to navigate the next steps an investor and their team have to take. Read more →

Navigating commercial real estate listings and finding the best fit for your investment strategies can be quite challenging. Aside from price and cap rates, a key feature to consider is the type of lease that may already be in place on a property (which you’ll inherit as the new property owner). Lease types vary, and the unique details within each deal can differ significantly from one property to another.

Read more →

There are many types of investors in this world. Some are very hands-on and know exactly what is happening with each investment. Others are less hands-on but still like to know a bit about how their investments are doing. Then, there are the passive investors. There is a place for each type of investor because every investment — from stocks to commercial real estate properties — needs investment funds to thrive. Every investor, no matter what type, has goals for their investment portfolio. For some, they just want to see growth. Others want to take advantage of as many opportunities and tax benefits as possible.

Read more →

Commercial real estate investment can be complex, especially when you get into some of the more granular details and processes. For some investors, growing a portfolio is a key to success. In order to do this, there are many different opportunities to buy, sell and trade commercial real estate properties. When a real estate investor knows they want to sell one property and buy another for investment or business purposes, they can conduct what is referred to as a 1031 exchange. Read more →

Triple net lease real estate is popular for investors who want to add a low-risk, low-touch property to their portfolio that generates consistent monthly revenue for many years. 

Triple net leases are typically used for larger and more complex structures, i.e., a strip center or a chain store such as 7-Eleven or McDonald’s. These properties with leases to large single tenants such as national restaurant chains are extremely popular with investors because they provide turn-key investments. The properties tend to have more complicated leases as the tenant is responsible for rent and utilities, along with all operating costs, which include three main categories (net-net-net) types of financial responsibilities typically included and outlined in the contract: Read more →

What is the difference between a triple net lease and a modified gross lease?

What is a Modified Gross Lease?

A modified gross lease can be best understood through comparison, as it represents a middle ground between a full-service gross lease and a triple net (NNN) lease.

Before signing an industrial, retail, or commercial lease agreement, it’s crucial to learn about complex lease terminology to understand and budget for the price you will be paying per square foot.

Leases are often gross, modified gross, or triple net, representing three methods in how costs are divided between tenant and property owner. The kind of lease is often determined by the type of building or the property’s location. It’s crucial to know the difference between these leases before signing a contract.  Read more →

Some investors need unique ways to finance an investment. Conventional loans, bridge loans, Small Business Administration (SBA loans), and even some other alternatives that many investors aren’t even aware of. Some of these options are a great way for investors to diversify and grow their portfolio while getting rid of properties that may not serve them anymore but keep the businesses that do.  Read more →

When you are looking to buy or sell a commercial property, there are many different steps and considerations you are making. You may be thinking about growing or diversifying your portfolio. You may be thinking of selling a property that no longer fits your goals or generates necessary income. You may have found your dream property to add to your portfolio. No matter what your goals are with the purchase or sale of a property, an appraisal will probably be necessary. Read more →

Wawa, a popular convenience store along the East Coast, can make a great triple net property type to add to a real estate investor’s portfolio. Convenience stores, in general, are always in demand and are found in every community across the United States. Customers will stop in on their way home from work, after filling up their car with gas, or on a road trip to grab some snacks before hitting the road again. This constant stream of customers ensures that the triple net property type can stay in business and are a worthy sale to pursue. For investors looking to add different types of retail or diversify from other types of commercial properties for sale, a triple net real estate property like Wawa offers a great way to have a credit-worthy single tenant in a fairly hands-off property type while ensuring a consistent income stream for you. Here are some tips and tricks for buying a Wawa NNN property. Read more →

Triple net lease investment properties are often a great, brand new addition to an investor’s real estate portfolio. NNN properties have a few key benefits for both the landlord and the tenant that make them a popular option for commercial real estate properties. These benefits, for property owners, include less time invested as property maintenance is passed to the tenant, and fewer expenses as property taxes and insurance premiums are handled by the tenant as well. This provides a consistent income stream without a ton of added stress. Now, when investors look for NNN properties, that can mean a variety of things. Some medical offices, strip malls, dollar stores and restaurants fall under this category. Within the restaurant sector, both dine-in restaurants and fast food restaurants are often triple net leased. Read more →