Massachusetts investors who have primarily focused on residential real estate may want to switch to nonresidential properties in the near future. This is because commercial real estate features multiple benefits over its residential counterpart. Here are a few of them.
Commercial real estate properties can generate many income streams if investors have several units they can lease to tenants. As a result, these properties can tolerate changes in the market much more easily than residential properties can. Also, leases in commercial buildings are longer lasting compared with those in residential properties.
Another reason to buy commercial properties is that they are physical assets. As a result, they offer stability and can therefore come in handy for investors who need collateral. Various types of commercial properties exist, including those used for manufacturing, providing health care and storing items. In addition, they are divided into multiple classes. Classes A, B and C refer to properties that are new, require small upgrades or need substantial capital investments, respectively.
Residential real estate investors may understandably look forward to finally getting their feet wet in the commercial real estate world. After all, the commercial real estate industry appears to be extremely promising these days, with commercial property sales reportedly soaring in 2018. At the same time, investors may be unsure about how to navigate a commercial real estate transaction, especially the potentially complex legal aspects of it. Fortunately, an attorney in Massachusetts can guide them through the process to make sure that their legal rights and best interests are protected from start to finish.