Commercial Real Estate - Buy or Lease Commercial Real Estate
Let’s look at the broader meaning of commercial real estate It is a term widely used to incorporate buildings such as office space, retail outlets, logistics warehousing and storage properties. Unlike residential estates, it is property that can generate money on a business level. So, whether you own the commercial property and rent it out, or whether you are renting it to run a business from, you will in essence be generating an income either way.
Have You Heard of the 2% Rule?
Commercial real estate is a sound investment and well worth considering if you are wanting to expand your property portfolio. While residential properties generally have an annual return off the purchase price of approximately 1%, commercial properties offer a much higher rate of return of anywhere between 5% - 10%.
If your monthly rental income is at least 2% of the purchase cost. This is indeed a smart investment to make, and your cash flow will look extremely healthy.
Do You Want to Lease or Buy?
At Fortress REIT, we believe in smart, sound investments and quality offerings. Commercial real estate investment is all about location. The current market conditions in South Africa offer much in terms of securing property below market value due to a global pandemic that has struck businesses down hard and fast. If you can, it is worth taking advantage of this downturn. It requires timing and a modicum of risk but is well worth it if you are investing with Fortress REIT. With us, you are safe in the knowledge that location will represent substantial growth.
The fundamental reason to invest in commercial real estate is to enable financial growth. Rentals on commercial properties are higher than on residential properties. The other plus is that while a rental on a residential property will often extend from six months to one-year, commercial outfits demand a lease period often of at least three years, which in turn guarantees a sustained income for a longer period, making you feel more secure in your investment. To add to this, there is so much choice across the commercial property sector, from large high-end operations to small storage warehousing facilities. The options are endless.
At Fortress REIT, we have carefully chosen sites that are easily accessible, and that are on-key arterial routes. Our commercial real estate projects, such as Galleria Mall on the sparking Amanzimtoti coastline and Evaton Mall just north of Vereeniging offer destination shopping sites that are modern, well situated and with plenty of parking.
The commercial office projects we have on the go are in abundance. You could almost wear a blindfold and pinpoint anywhere on a Gauteng map and you will find a Fortress REIT development, from Illovo to Centurion, Fourways and Kyalami.
Our commercial real estate options are hassle-free, straight forward and professional. Choosing the right property investment to suit your business can be time-consuming and risky. Let us advise you on what will suit you best. The proviso being: do not get caught up in a capital-intensive investment without expert advice. Speak to Fortress REIT today.