Benefits of Investing in Commercial Real Estate
Commercial Real Estate is an attractive asset class offering many benefits to investors. AAA quality assets including office buildings, warehouses and shopping centres can provide high yields, secure long term income from premium tenants and genuine prospects for capital growth. Another feature of direct commercial property investing is the diversification and lower volatility it offers when compared with shares, equities or other derivative products.
While the benefits of investing in Commercial Real Estate are clear, gaining exposure to assets of this kind can be out of reach for most investors due to the considerable management requirement, complexity and high cost of entry. Participation in a Real Estate Investment Trust (REIT) or syndicated property investment can solve this, giving regular investors the opportunity to participate in the ownership of premium assets in the $10m-$50m range.
Selecting a fund manager or property syndicator with a strong track record and extensive experience in asset management will increase the security and growth prospects of your investment but remember that it is always important to seek independent financial advice.