Whether you own a small craft boutique or a tech startup, there may be a time when you need to expand and move into a brick-and-mortar space situated in a great part of town. While many business owners lease space, there are some serious perks to owning commercial real estate. Here are a few reasons you should make the investment, and why you won’t regret your decision. 

Why Invest In Commercial Real Estate

1. Enjoy Convenient Tax Write-Offs

When you invest in commercial real estate, you have the chance to write off more on your yearly taxes, which can reduce your taxable income and make running your business more profitable.

For instance, IRS Tax Code Section 179 states that you can write off up to $1,000,000 worth of equipment purchases and furnishings for commercial property the year the space is acquired. As the owner of your own property, you can also segregate costs to write off depreciation, which can help you fund building updates. 

2. Reap Excellent Returns 

On average, commercial real estate property has a return on investment of 9.4% over the course of 25 years. To put that number into perspective, if you purchase a property for $500,000 and use it for 25 years to run your business, you would make an average of around $547,000 when you sell the property, making it easier to move on to your next adventure. 

3. Rent Out Extra Space

Sometimes, business owners wonder how they will use large commercial spaces, especially if their own company is in the early growth stage. Fortunately, when you own the property, you can sublet out other portions of the building, creating a supplemental revenue stream and giving you full control over who can rent next door. 

If you are interested in broadening your horizons and you’re considering an investment in commercial real estate, turn to KW Commercial in Florence, KY. For over five years, this trusted business has been focused on pairing investors and business owners with properties that meet their custom criteria, saving people time and money. Learn more about their services by visiting their website or calling (859) 359-6805.