Diversification is the number one rule in investing. You might have heard this – having all your eggs in one basket can leave you with crushed eggs instead of a soufflé! Humor aside, as you consider your financial goals for the next year, consider the plethora of opportunities you can find in commercial real estate. You may choose to develop a piece of raw land, take over an office building, or invest in warehouses. There is something suitable for just about any investor.
Work with a boutique real estate brokerage like The Estes Group when looking for investment real estate in Jackson, Mississippi. We offer you an investor-focused experience unlike any other brokerage in the Gulf South states. Experience superior service and continual communication when you hire us to help you build out your real estate portfolio.
5 Reasons Commercial Investment Real Estate Makes Sense
Here are five reasons to diversify your portfolio with commercial investments:
- Increase Income Potential: Location is important, but with the right area, you can expect a much higher annual return on the purchase price than in the residential market. It may be possible to see a 6-12% return in the commercial market versus 1-4% in the residential arena. This can make the difference between a few hundred dollars a month and a few thousand.
- Easier to Diversify Risk: With multiple tenants, you run less risk of losing out on an entire month’s rent when a tenant leaves. For example, you may have ten tenants in your strip mall. If one or two vacate, you still have the bulk of your stores leased and money coming in. Additionally, there are many different options for commercial investment real estate in Jackson, Mississippi. You can find medical offices, warehouses, and multi-use properties.
- Less Tenant Turnover: You can expect leases to last for about three years or more usually. Tenants are invested in building their businesses, and they will not want to move their companies at the end of a one-year lease. With the longer terms, you don’t have to worry about finding new lessees as frequently.
- Better Tenant-Landlord Relationship: Because your tenants are also business owners, they have their reputations to protect. They will typically work with you with a higher level of professionalism than residential tenants may. They are generally also better at following the rules set out in their lease since money is on the line.
- Less ‘On-Call’ Hours: You will find that your commercial tenants will call you less in the off-hours. They tend to keep regular business hours and will generally engage you then. To give you even fewer on-call hours, consider hiring a property manager like The Estes Group to handle most aspects of your commercial rental empire.
Broaden Your Portfolio with Assistance from The Estes Group
Decide today to expand your wealth-building goals by investigating commercial investment real estate with The Estes Group. We can help you find the right properties and then service them with property and asset management options. Not only do we service Mississippi, but we also operate out of Alabama, Tennessee, and Louisiana. Looking for help with acquisitions, development, or court-appointed receiverships? Please talk with us first.
Call us at 601-362-9633 or contact us online to discuss your real estate goals with our knowledgeable and experienced investment property brokers. We’ll help you research, choose, and purchase investment real estate in Jackson, Mississippi that delivers the best return on investment.