vBulletin stats
  1. Feel free to join, discuss and list your real estate properties. Never put your hard earned money in real estate without discussing the projects. Please don't throw around your website's link.
  2. Get stock markets trading ideas and strategies. Discuss Personal finance and plan your retirement. Join home buying forum to post your investment and trading questions.
  3. Post your rental queries in the city specific forum. If you are looking for a house, provide additional details like budget & specifications like 1BHK, 2BHK etc. If you are posting about your property for rent, provide maximum information like rent, locality, floor etc.

Advantages of investing in commercial office space

Discussion in 'Real estate Investment' started by christypereria, Mar 21, 2018.

  1. christypereria New Member

    The key advantages of investing in commercial office space in Mumbai are:

    1.Higher yields: Investing in commercial assets can provide a return generally not lower than 6%, going by past trends. On the high side, the yields stretch to as high as 10-11%/annum.
    2.Lesser maintenance spends: Typically it can be seen as a feature in retail spaces more so than office buildings where renovation is less frequent than retail spaces. Retail spaces would need greater upkeep if they are to increase footfalls over time.
    3.Valuation: Due to the higher yields and the nature of assets perse, commercial investments have a fairly higher valuation guidance as compared with residential buildings.
    4.Longer leases: Commercial rents typically have investments into interiors coming in from the incumbent tenant which would safeguard the interest of the landlord to a greater extent in terms of predictability of lease. Even in cases where landlord invests or owns the interior after having purchased it from an earlier tenant, the lock-in periods being defined would safeguard the interest of the landlord.
    5.Leveraging: Leveraging on a commercial asset is by far one of the cheapest forms of leverage for a landlord and the end use of the leverage isn't restricted either giving more independence for deployment of the funds.
    6.Depreciation advantages: Investing in and holding onto commercial real estate provides you with a significant tax shelter through the depreciation of the building and improvements depending on the holding structure of the asset.
    7.Greater number of investors: Commercial rented assets have the possibility of attracting more no. of investors easily, thereby increasing the chances of a healthy disposal process when the owner of the space intends disposing the commercial asset.

    So if you are planning to invest in commercial properties, then visit Jagaha.com for consultation. There many options for start-ups as well who are interested to take office space for rent to start their business.

Share This Page