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  • Will You Add? - Where Should You Consider Investing In Commercial Real Estate?

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    your property has a better chance to appreciate in value.
    To achieve your investment objectives there is a very good chance you will invest outside of California. If so, you want to choose properties in
    • More well-known metro areas that most people have an idea where these cities are.
    • Growing cities.

    These 2 factors will ensure your co
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    After identifying which type of commercial property you should invest in, you probably wonder where you should consider investing. To answer this question you need to ask yourself what your investment objectives are. They could be to:
    • Maximize leverage: you want to be able to borrow as much money as possible. If this is the case then most if not all properties in California will not meet your objective. Properties in California often offer 4 to 6 percents cap rate. This would require 40-65% down payment. So to maximize leverage you will need to invest outside of California where the cap rates are in the 7-9% ranges.
    • Receive strong positive cash flow: most if not all of commercial properties that offer high cash flow are outside of California. These properties in turn allow you to maximize leverage, i.e. borrow up to 75% of the purchase price.
    • Realize strong appreciation potential: if you invest in a right property at a good location (refer to the article “What location Means in Commercial Real Estate”) and right time, the biggest return often comes from appreciation. It’s hard to predict the potential for appreciation for a certain area. The fact the area has strong or weak appreciation in the past does not necessarily mean it will have similar appreciation in the future. However, if you choose to invest in a newer NNN-leased property on a main road in a growing or stable area with strict zoning, i.e. limited supplies of properties then your property has a better chance to appreciate in value.

    To achieve your investment objectives there is a very good chance you will invest outside of California. If so, you want to choose properties in
    • More well-known metro areas that most people have an idea where these cities are.
    • Growing cities.

    These 2 factors will ensure your co
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    erties in California will not meet your objective. Properties in California often offer 4 to 6 percents cap rate. This would require 40-65% down payment. So to maximize leverage you will need to invest outside of California where the cap rates are in the 7-9% ranges.
  • Receive strong positive cash flow: most if not all of commercial properties that offer high cash flow are outside of California. These properties in turn allow you to maximize leverage, i.e. borrow up to 75% of the purchase price.
  • Realize strong appreciation potential: if you invest in a right property at a good location (refer to the article “What location Means in Commercial Real Estate”) and right time, the biggest return often comes from appreciation. It’s hard to predict the potential for appreciation for a certain area. The fact the area has strong or weak appreciation in the past does not necessarily mean it will have similar appreciation in the future. However, if you choose to invest in a newer NNN-leased property on a main road in a growing or stable area with strict zoning, i.e. limited supplies of properties then your property has a better chance to appreciate in value.
    To achieve your investment objectives there is a very good chance you will invest outside of California. If so, you want to choose properties in
    • More well-known metro areas that most people have an idea where these cities are.
    • Growing cities.

    These 2 factors will ensure your co
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    ash flow are outside of California. These properties in turn allow you to maximize leverage, i.e. borrow up to 75% of the purchase price.
  • Realize strong appreciation potential: if you invest in a right property at a good location (refer to the article “What location Means in Commercial Real Estate”) and right time, the biggest return often comes from appreciation. It’s hard to predict the potential for appreciation for a certain area. The fact the area has strong or weak appreciation in the past does not necessarily mean it will have similar appreciation in the future. However, if you choose to invest in a newer NNN-leased property on a main road in a growing or stable area with strict zoning, i.e. limited supplies of properties then your property has a better chance to appreciate in value.
    To achieve your investment objectives there is a very good chance you will invest outside of California. If so, you want to choose properties in
    • More well-known metro areas that most people have an idea where these cities are.
    • Growing cities.

    These 2 factors will ensure your co
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    on. It’s hard to predict the potential for appreciation for a certain area. The fact the area has strong or weak appreciation in the past does not necessarily mean it will have similar appreciation in the future. However, if you choose to invest in a newer NNN-leased property on a main road in a growing or stable area with strict zoning, i.e. limited supplies of properties then your property has a better chance to appreciate in value.
    To achieve your investment objectives there is a very good chance you will invest outside of California. If so, you want to choose properties in
    • More well-known metro areas that most people have an idea where these cities are.
    • Growing cities.

    These 2 factors will ensure your co
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    your property has a better chance to appreciate in value.
    To achieve your investment objectives there is a very good chance you will invest outside of California. If so, you want to choose properties in
    • More well-known metro areas that most people have an idea where these cities are.
    • Growing cities.

    These 2 factors will ensure your commercial property is in high demand so it’s easy to sell later and has low vacancy rate. You definitely don’t want to invest in a tiny little city located in a middle of nowhere or declining areas where it is easy to buy but hard to sell.

    This article is not intended to list all the areas in the country where you should consider investing. Rather it is meant to high light a few major metro areas that you should consider; However if you have ruled out or have not considered these two metro areas, you probably don’t know what you are missing!

    1. Atlanta Metro Area, GA: This is a clean and modern area which has taken off since the Summer Olympics in 1996. Atlanta metro is one of the fastest growing markets in the country where the cost of doing business is 97% of the national market. It has well-developed transportation network. The Hartfield-Jackson Atlanta airport is the world busiest airport. It’s not an accident that UPS chose Atlanta as the main sorting center for all of its domestic next day air packages. All of UPS air packages have to be flown here for sorting before flying to their final destinations. The Atlanta Hartfield-Jackson airport is rarely shut down due to bad weather so UPS planes can fly in and depart day or night 365 days a year. Atlanta has been able to attract various companies due to well-developed infrastructure and low business costs: Home Depot, Coca Cola, CNN, Delta Airlines, UPS, Walmart, Bell South, AT&T, IBM, and Kroger. This is the place where Center

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