Ways to Monetize From a Commercial Real Estate Property

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Ways to Monetize From a Commercial Real Estate
Property
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The commercial real estate has made more money
than any other sector in the history of time. But
people are still skeptical about investing in
them.
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People who are new to the business of commercial
real estate investments have a got a notion that
they require a huge capital to start with their
business.
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However, this is not completely true because you
can make money in real estate even if you are
just starting your venture.
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Here are the ways through which you can monetize
from a commercial real estate property.

• Invest in REITs
• Invest in short term rentals
• Lease commercial real estate

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Invest in REITs
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The real estate investment trusts are
organizations that own, manage and represent
large real estate portfolios.
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When you are investing in a REIT, it offers you a
tremendous advantage in the form of lowering the
risks associated with the real estate market.
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The rate of interest for residential real estate
investment increases by about 4.1 over inflation
commercial real estate investments appreciate
about 4.9 over inflation.
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The lower risks and low correlation together
means that REITs are better placed as a means of
investing in the commercial real estate.
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Invest in short term rentals
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Thanks to globalization, sharing economy startups
are making huge progress and commercial real
estate investors are looking for opportunities to
invest in short-term rentals.
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People or particularly travelers prefer
alternative accommodation to hotels which
increases the rental demands for such properties.
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This increased demand leads to higher occupancy
and lowers the risk of vacancy while increasing
the rate of returns on your investment.
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If you want to invest in a great short-term
rental commercial property, then you need to pay
more attention to areas with high demands for
short-term rentals.
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Lease commercial real estate
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With the rise of so many companies and new
startups, the demand for office and commercial
space is increasing day-by-day.
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Therefore, leasing commercial real estate is very
profitable as the commissions in the commercial
real estate are very high in comparison to
residential properties.
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Moreover, as commercial real estate lease period
is more than 5 years or longer, you can demand a
portion of business profit as your commission.
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However, as the competition in the commercial
real estate is very tough, you should have the
ability to actively pursue close deals.
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Conclusion
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Moreover, if you are providing your tenants with
some additional amenities, then you can charge
them for that which will earn you extra money.
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The above-mentioned factors are some of the ways
through which you can monetize from a commercial
real estate.
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