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investing in commercial real estate

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

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From medical offices to strip malls and everything in between, real estate investors are constantly looking for the next investment opportunity to expand their portfolios. There is no shortage of investment opportunities, after all, and nearly every industry needs dedicated investors to help them succeed especially when investing in businesses for sale. As an investor, growing your portfolio and seeing a profit on those investments is undoubtedly important to you. Finding the right investment is key to that success.

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Chris Sands named in Connect Commercial Real Estate’s 2021 Top Broker Awards

Opening the doors of Sands Investment Group during the global financial crisis in 2010, Chris Sands has thrived in the face of hard times from the very beginning. He stays committed to investing for success well into the future by focusing on relationships built by win-win deals, collaboration and transparency. In 2020, through its founder’s leadership, SIG doubled in size—gaining recognition as one of Inc 5000’s Fastest Growing Private Companies in America.

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Top Broker Honoree: Sands Investment Group’s Chris Sands

Named Rookie of the Year for 2004 at Marcus & Millichap, Chris Sands launched his own business in 2010. His vision for Sands Investment Group was to establish a highly-specialized and knowledgeable company able to provide buyers and sellers of net leased properties with a level of service unprecedented in the industry. To this endeavor, the former professional tennis player applied the drive and termination that enabled him to compete at the highest level of his sport. Read more

SIG Handles Large Safeway Grocery Transaction, Closing Escrow Despite Fires in CA

SIG brokers handled the transaction for a large Safeway NNN lease in Santa Rosa, finding a new buyer quickly when nearby wildfires caused an existing deal in escrow to fall through.

Working with SIG brokers is the best way to leverage top listings, lending, and marketing efforts-and creative solutions in times of natural disaster. In this deal, lead SIG broker Dan Hoogesteger, along with co-broker Andrew Chana, were able to successfully find a new buyer for the large grocery property after California wildfires nearby caused an existing buyer to back out on the last day of their contingency. The second time around, the transaction was seamless, and escrow closed quickly.  Read more

Sands Investment Group Closes Escrow on Final Asset in Trophy Albertsons Grocery Portfolio

Sands Investment Group (SIG) announced today they have closed escrow on the final asset in a “trophy” Albertsons portfolio. SIG Managing Director, Daniel Hoogesteger, and SIG Advisor of Capital Markets, Andrew Chana, were co-brokers on the portfolio, leveraging their specialized expertise in the net lease grocery market and tapping into their extensive network of investors to achieve record-breaking prices and cap rates on this rare grocery portfolio in California. Read more