Although investing in residential property can generate income and profit, putting your money into commercial real estate arguably provides even more advantages. Offices, retail establishments, apartment buildings, warehouses, and mixed-use properties are typical commercial investments. If commercial real estate is something you are considering, review the top reasons for moving forward.

What Are the Benefits of Investing in Commercial Real Estate?

1. Stable Income Source

Compared with investments in stock, whose value can change in a matter of hours, enjoy a stable income from commercial real estate. Commercial properties provide essential services, such as office space, and represent a secure investment with a much lower risk potential.

2. Tax Benefits

You’ll obtain tax breaks when you invest in commercial real estate. If you fall under the “real estate professional” category established by the IRS, for example, you can write off deductions for items that depreciate, such as air conditioning and lighting. It’s also possible to deduct mortgage interest, property repairs, and transportation to and from your property when you make this investment.

3. Leverage Opportunities

Consider leveraging your investment with borrowed capital. The idea of leveraging is that the profits earned will be more than the interest you pay on the loan, so you’ll earn more than if you purchased the property without borrowing. Banks are also more likely to process loans for commercial properties because of income stability.

4. Appreciation

Expect your commercial property to increase in value over time. Making property improvements adds value as do rising rents stemming from fluctuations in supply and demand and inflation.

If you’re interested in investing in commercial real estate, contact KW Commercial in Florence, KY. These real estate agents have served the Greater Cincinnati area since 2015, offering land development and brokerage services in addition to property sales. Call (859) 359-6805 today to get started, or visit their website to review their latest property listings.