It takes more than the desire to grow your financial portfolio to start investing in commercial real estate. The savvy investor conducts a lot of research into the most profitable types of commercial properties before making any decisions. It’s essential to know with certainty that you will be able to give your investment total commitment.
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.
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.
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 →
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 properties, or NNN properties, are an attractive real estate option for investors looking to expand their portfolios with a variety of property types. NNN leases can be applied to properties like retail, dining, offices, or industrial space. This means that acquiring NNN properties can truly diversify a portfolio with lower risks than other properties. When considering which types of properties to invest in for triple net leases, investors should consider fast food restaurants, such as Taco Bell.
When commercial real estate investors want to acquire a new property, they often go to what they know. Their portfolios may consist of many similar types of properties. But it doesn’t have to be that way! Diversifying a real estate portfolio can be one way to ensure sustainable, steady growth over the long term. Commercial real estate investors may shy away from industrial properties for sale if they have never considered one before, but there is great growth in the industry and there can be strong returns to investors who do it right.
As a commercial real estate investor, you may be seeking out the next opportunity right now, or just keeping your options open for future investments. New investment opportunities offer a great chance for you to diversify and grow your portfolio, or simply a chance to trade out a lower performing property for something that will bring you more value in the long run. Whether you currently have a vast array of property types or you’ve focused on one primary type like office buildings, you may be wondering about other ways to increase your investments — and your income. One type of commercial property that can help you grow your portfolio is commercial warehouses for sale.
Commercial warehouses come in all sizes, and they can be used for small, local businesses selling items online or for large, multi-state or multi-national companies with huge ecommerce and sales success. They are found across the country in order to serve their customers, who range from businesses to consumers to even a single company storing items until they are needed. No matter the size of the warehouse, there are a few key benefits investors have found when investing in this type of commercial real estate property. Let’s dive a little deeper into investing into the warehouse property type.
Investing in commercial warehouse properties for sale often makes sense for people. These leases tend to be much longer term, so you won’t have to constantly seek out a new tenant. With options for a longer lease, commercial warehouses can be a great property for triple net leases, where you can pass off many of the maintenance and tax costs to the tenant. You’ll see a higher return on this property type in most cases, as well. While commercial warehouses may have a higher entry point, most investors make their money back relatively quickly with this high value opportunity zone real estate.
Right now, we are still in the post-pandemic market. During the past 15+ months, ecommerce boomed, which means that there has been a great demand for commercial warehouses for sale across the country. People got used to online shopping and have shifted much of their shopping habits away from brick and mortar stores. This trend of online shopping and businesses needing warehouse space is not going away any time soon. That makes this a great time to invest in commercial warehouses to grow your commercial real estate portfolio.
Because commercial warehouses are in high demand, both from businesses and from their customers who are continuing to shop online necessitating more warehouse space for processing orders, these three advantages can be found with this type of commercial real estate:
Now, as with anything, there are cons to investment opportunities. So you have the best information going into any investment, you should know these three challenges associated with investing in a commercial warehouse:
When you’re looking for the right commercial warehouse to invest in, there are a few key things to keep in mind. Location is very important to these types of businesses, but often in a different way than other properties you may currently own. Here are four elements of the location to understand when seeking out a commercial warehouse space to invest in.
Location: Distribution centers and warehouses are often located near large population centers. This means there will be better access to more trucks for cross-country delivery. But a large population area doesn’t necessarily mean a big city, which would have more traffic and increased costs. You can find warehouses properties for sale in every state, and in most cities too. In most cases no matter where the warehouse is located, investors are able to plan for reliable monthly income with few landlord responsibilities, especially when tenants and landlords agree to a NNN lease.
Space: With a commercial warehouse, there needs to be plenty of space for delivery of product. The business relies on receiving products, as well as processing orders and distributing products. This means they will need to have space for trucks to come and go and unload or load materials. Commercial warehouses are often best situated near transportation, like highways or interstates, as well as airports or ports (if located near oceans and large rivers used for transportation). Because the costs of bringing in materials and shipping them out is usually more than half of the expenses these businesses see, location really matters for warehouses.
Storage: Aside from needing space for loading and unloading, commercial warehouses can be used for other things than ecommerce. The changing supply chains now mean more businesses have a need for extra storage or manufacturing space. Some businesses or product types need climate-controlled commercial warehouse space, and across the country the industry has seen a demand for cold storage during vaccine distribution. Storage for products, manufacturing, or other needs as supply chains, businesses, and offices change is continuing to grow.
Height: A unique element to commercial warehouses is the need to understand the importance of height (floor to ceiling space inside the building). The property’s square footage only tells part of its storage capacity, in floor space. But with height, this gives investors and tenants a better idea of the unobstructed space within the building, representing the stacking potential of warehouse contents like crates and boxes.
When you partner with a commercial real estate broker who has your goals in mind, you are better equipped to find the right listings and properties to grow your portfolio. At Sands Investment Group, our brokers across the country work with you to identify your goals, define success on your terms, and find the properties that fit your needs including industrial properties, office spaces and a variety of commercial properties. If you’re ready to discuss adding a commercial warehouse to your portfolio in the post-pandemic market, contact the broker team today by calling 844.4.SIG.NNN or sending an email.
As an investor searches for their next property opportunity, there are many different types of real estate that may jump out as a possibility. From fast food restaurants to strip malls and everything in between, real estate can be a lucrative investment opportunity. In 2021, especially, it can seem like there are many good options for investments. One such investment that can add significant value to a growing real estate portfolio is a CVS for sale.
If you’ve been researching investment opportunities in commercial real estate, you have probably come across many terms you are unfamiliar with. It can seem overwhelming to figure out if investing in real estate is truly what you want, especially when you don’t understand what is being discussed.
Investors are always looking for the next opportunity. Whether you are new to commercial real estate investments or you have a robust portfolio already, a convenience store for sale might make a great addition to your portfolio. Convenience stores are always in demand, and are found in just about every city, town, or community across the country. A convenience store or c-store meets the essential needs of their communities and considered recession-proof, too, as customers will stop to buy what they need even if they don’t have a ton of disposable income, especially if the store is located in a good area near people’s work, home, or commute.
Investors are seeking triple net properties that can generate robust returns, even during market downturns. Another requirement is selecting brick-and-mortar retail properties with the ability to compete with e-commerce as consumers purchase more and more items online. One category of retail property fits these prerequisites to a ‘T’—an auto parts store or business for sale, which may be one of the industry’s best-kept secrets.
Investors who desire optimal opportunities for triple net lease properties may not have considered 7-Eleven stores. 7-Eleven is a known for its Slurpee drinks, but people may not realize that it is the world’s largest convenience store business. It’s consistently ranked as a top-10 franchisor and boasts of 69,000 stores in 17 countries; more than 10,000 company-owned and franchise stores are located in North America. In 2021, Entrepreneur magazine rated it ninth in its ranking of the top 500 franchises.
As investors seek the next right opportunity to add to their portfolios, there are a number of businesses that can make a good fit. Sometimes, investors have focused solely on one type of business in the past, but may be looking to expand into a new industry. Other times, an investor might be looking to sell off one property and invest in another one. And yet other investors simply want to add to their portfolio in an industry that they know will not be going away any time soon.
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.
Working with SIG brokers is the best way to leverage top listings, lending, and marketing efforts. SIG broker Kaveh Ebrahimi has specialized in urgent care facilities over the past 6 years, pioneering the sale of urgent care properties by closing on his first location back in 2015. Since then, his sales numbers continue to increase as he currently has 14 urgent care clinics in escrow with 4 scheduled to close in April 2021.
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