The Opportunities and Challenges in Industrial Building in Commercial Real Estate Business
One of the massive profit-oriented businesses in the contemporary international trade is the investment in commercial real estate whether it is commercial or residential. If you are seeking opportunities in cash flow and not only the capital growth, then you should focus your real estate business venture more in the commercial industrial property which offers maximum financial turn over than any other sectors. Eventually, your cash flow increases abundantly in numerous ways ensuring profits leading to capital growth. However, you have to dig out the pros and cons in details before you invest in industrial buildings to make sure that you do not suffer loss and ruin your business. Get the best opportunity of investing an in industrial building with Forum Properties to ensure the growth of your business without fail.
The commercial real estate brings you maximum cash flow in comparison to residential which brings only 4%. There are many kinds of commercial properties like retailing, office buildings, warehouses, apartments, mixed purposes buildings etc. The industrial properties give you the maximum returns up to 10% cash flow in comparison to all other categories. Therefore, investing in an industrial building is the first priority of investors in terms of its return and its higher income potential.
The maintenance cost of an industrial building is proportionately less than residential buildings, retailing and apartments. The residential building and apartment owners, as well as the retailing owners, bear a lot of expenditures besides the fact that their tenants to pay various taxes and maintenance and management costs. But the owners also pay major repairing costs, water expenses, and other property fees. In an average, these expenses sum up to 30% of the rent for residential properties whereas it comes about 5 % for commercial properties.
When it comes to residential property, the owner has to be ever alerted of the situations and eventually make the tenants alert on every situation. But on the other side, in commercial properties irrespective of an industrial building, office, or factory etc. they never work 14 hours, further giving you sufficient time to rest or concentrate your time in some other progressive work.
The cons side of the industrial building includes massive time investment if you have multiple tenants. Secondly, when it comes to major repair and maintenance issues, you can never handle it yourself or with your favourite mason or technician. You will have to take the assistance of professional architect or designers for the purpose. Industrial building involves more risks. It gathers more crowd than the residential buildings, and eventually results with more probabilities of numerous accidents and risks.