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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