Monday 8 February 2016

Why Invest in Commercial Properties?



These days, investing in property has become highly profitable, be it residential or commercial. It is a general view that investing in commercial property is more profitable than residential. Even after the real estate scenario has become a bit worrisome, investing in commercial properties has been perceived as a positive move, as more of commercial activities are taking place these days.

Jade Business Park, Mohali

Commercial property is defined as property that is meant particularly for business purposes, which includes retail buildings, office parks, restaurants, warehouses etc. The investor usually possesses the building and collects rent from the business that operates there.

Profits of Commercial Property


(1) Earning potential is higher here. As the income that is generated by the commercial property is related to its usable square footage, it is valued differently, unlike residential real estate.

(2) Cash flow is generally higher per square foot and on an initial investment.

(3) The leases are often much longer compared to residential property.

(4) Banks value commercial property differently. Usually, a down payment of 30 percent or more is required here.

(5) The landlord and tenant have more of a business to business customer relationship, which helps in keeping interactions professional and respectful, as the property is treated purely on business terms.

(6) As the retail tenants try to impress the customers by maintaining the store or office space whereas the owner maintains and improves the quality of the property. This will, eventually, increase the value of their investment.

(7) Unlike residential properties, where the tenant calls the landlord at any time either for some repair or something else, the owners of a commercial property do not have to attend late night calls from the tenant, as the business usually operated for a limited time.


Investment in Property


Even with these advantages, there are greater risks attached to commercial properties, when it comes to the damages that can happen to it as there would be regular visitors and customers. Moreover, for acquiring a commercial property, the initial investment is large, compared to the residential real estate. Nevertheless, it is more beneficial to invest in this sector, when we consider the higher financial reward.
Jade Business Park, Bird View


At this time, the first commercial project in Mohali, JadeBusiness Park- J90- by Mona Townships offers you space to boost your business and investment. It consists of 13-storeyed office suites with ultra-modern exterior façade and 70 percent open area, well-lit and ventilated corridors, lavish entrance lounge etc. It has been viewed as an ideal location designed to convey your business image to the clients and to guarantee the wellbeing of the people and enhance productivity. Visit us at  for more information.

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