Reasons to Add a Commercial Real Estate Investment to Your Porfolio
December 17, 2013
There are is plenty of opportunities to make a significant amount of money in commercial real estate. In fact, commercial real estate has been such a consistent moneymaker over the years that nearly every savvy investor has a portion of their portfolio invested there. Here are three reasons why:
- Income Generation b The valuation of a commercial real estate property is predicated on its income earning potential. They almost always provide higher, more secure returns than residential properties.
- Enhanced Diversification b Diversification is the key to long term success and commercial real estate will always be a part of every successful investors portfolio.
- Lessened Volatility b Commercial real estate is also relatively stable as measured over the past century. Since the leases are paid by operating companies have far more to lose than any single individual and are therefore less likely to default.
For more information on this and other South Florida commercial real estate topics, please visit us at the Morris Southeast Group. You will find us online at morrissoutheastgroup.dsherpa.com or you can reach us directly at 866-930-1426.