Commercial and residential properties are very different. The way you lease, manage, and maintain those assets will vary depending on the type of property you’re renting out and the tenants you’re working with in those spaces.
Investing in Winston-Salem commercial properties is a smart way to diversify your real estate portfolio and increase your earnings. If you’ve never invested in commercial real estate before, surround yourself with experts who can help you navigate the process. There’s a lot of potential here, but you have to know how to make smart choices.
At Capstone Realty, we help investors with both residential and commercial assets as well as HOA communities. When you’re looking for a commercial property, we can help you identify the right opportunities and make the best decisions for your investment goals.
Here are some of the things you need to know before you decide to purchase and lease commercial space.
Commercial Properties Often Earn More Rent
There’s a potential to earn higher rental incomes when you’re renting out commercial space instead of residential space. Rental values will vary depending on the size of your space and its functionality. A large industrial warehouse, for example, will be priced differently than a retail space.
The cost of renting out any commercial space is often higher than the cost of renting a home, however, so you can expect better income. The tenants looking for commercial space will have more capital and they’ll understand that the right space for their business will impact their own financial goals.
Winston-Salem Commercial Properties and Vacancy
The risk of vacancy is ever-present when it comes to renting out any property, but with commercial properties in Winston-Salem, there’s less of a chance that you’ll be stuck with unoccupied properties for long periods of time.
Compare what vacancy can do to your income when you’re renting out residential spaces versus your commercial properties. One vacant office in a building that houses 50 offices is not going to impact you as much as losing a tenant in a single-family home or even one of the tenants in your duplex.
There’s also less turnover with commercial properties. Most lease terms are longer and there are high costs associated with breaking a lease early. As an owner, you can count on the rental income for several years instead of just one.
Commercial Rental Properties are Transitioning
There’s a lot happening economically when it comes to commercial properties in Winston-Salem and throughout the country. Restaurants and bars are still working hard to recover from shutdowns, and some haven’t opened back up yet. Things are still uncertain with the pandemic and its fallout, but a lot of businesses renting commercial space in Winston-Salem have found ways to survive. Retailers are also continuing to have strong sales, and there has not been a huge loss of leases, tenants, or interest for commercial property owners.
Understanding the market and the local economy is essential when you want to invest in commercial space.
Winston-Salem Property Management
Before you invest in commercial properties, do your due diligence and find a professional management company that can help. Whether you’re interested in warehouses or retail spaces, restaurants or industrial lots, doing your homework and understanding the market is critical to establishing a plan for success.
A lot of investors make the mistake of trying to do everything themselves. You don’t have to be an expert on everything. Talk to real estate experts, property managers, accountants, insurance professionals, and mortgage brokers. You need to team up with people who have been doing this for many years. We’ve seen what works and what doesn’t, and we’re prepared to help you invest confidently in commercial real estate.
Contact our team at Capstone Realty, and we’ll be happy to facilitate a successful investment experience.