Commercial Real Estate Investment and advantages associated with it

AN OVERVIEW

People are getting more aware of personal finance and money management is spreading via social media. The exposure to financial instrumentals has been increasing as one can directly invest their money by seeking correct information. The middleman or the third person in this kind of financial transaction s have been replaced by many websites. The services provided by these sites are accurate and trustworthy. Stocks, mutual funds, bonds, fixed deposits, real estate and commodities are some of the most loved personal finance plans adopted by the people. Rather than staging money in one place, people have started investing their money by doing the appropriate research.

Commercial real estate is one of the best investment options as it is safe and convenient for long-term investment. Commercial real estate always comes with benefits like promising cash flow and asset appreciation. Buying and giving those commercial spaces for rent manages assets. The financial gain can be obtained and can be stabilized as a secondary income. Buying or investing in commercial spaces reduces the risk factor as one can assure returns on it. The stability factor in this kind of investment makes it a perfect choice for everyone.

In recent years, the whole world has suffered due to pandemics and initiated emergency situations. Wars, pandemics, poverty and many other reasons are the main reason for inflation, the condition where prices of goods become higher than the price of money. To beat this inflation one can adopt as during inflation the commercial businesses have increased in the pay scale as during several wages paid increases and the business owner get an advantage of huge profit. This creates extra income other than organic growth for commercial real estate investors.

Invest in real estate as it gives the advantage of streamlining cash flow. The long-term rental agreements which last for 3 to 5 years allow constant cash flow and make the volatility rate stabilised. Lower volatility can be achieved in long-term commercial events as the short-term agreements for commercial property as the valuation even outs. This type of acquisition is very convenient as the investor only has to collect rents and occasional checkups. Individuals don’t have to continuously track these kinds of investments, thus it saves time and is best for long-term investments. The price appreciation an individual gets along with its property rates is also significantly high.

Commercial real estate investments are tangible means the investors can evaluate their property for personal use. This specification adds a form of security that other asset-based financial instruments like stocks, mutual funds, FDs and commodities do not provide. There are certain tax benefits available for first-time buyers. Getting tax benefits on commercial properties is like an incentive as one can save a lot of money in numerous ways. One should have proper legal advisor support for the same as it helps them to simplify the process.

Commercial real estate is considered a hard asset and can retain its permanency. The owner has the right to modify the property in such a way that it can get maximum rent through it. The property prices have always seen an uptrend as many business ventures, offices, shopping centres, malls, food courts, etc are always keen to elaborate their business by opening more and more branches near prime locations.

Investing in real estate has been so convenient as one can acquire small stacks in the property with the help of LLCs. This kind of investment doesn't require huge capital and maintenance. The startup boom has created a base for commercial spaces. A huge amount is people are quitting their jobs and shifting their attention toward creating their businesses. These budding entrepreneurs tend to buy commercial spaces in noteworthy areas of metropolitan cities as these cities have a huge availability of investors. The favourable conditions offered by these commercial spaces make them the perfect place to invest in.

Buying commercial places requires lots of capital as they are overpriced but at the same time assures a fixed amount of returns too. The willingness of the buyers and correct research of the project play a vital role in this kind of investment. One should be familiar with the property trends as the people prefer the most popular areas which are located in the hotspot regions of the city. Having a commercial property in such areas increases the profits and saves a huge amount of money to spend on marketing. The correct geographical location provides opportunities for organic marketing.

Factors Determining Real Estate Investments:

The general outlook of the property: The commercial spaces should be spacious to accommodate a maximum number of people. The specifications added to the property like air conditioning, flooring, seeing and property sanitary wares should be available. These small things reduce the costs if they are pre-installed by the owners. Along with social infrastructure and amenities, these small specifications should be taken into consideration before buying a commercial space.

Tenants: Always go for a huge company as a tenant as they come with a secure form of cash flow. Multinational companies tend to pay the rent of the spaces on time as compared to others. These kinds of well-reputed companies pay a better amount of deposit than the property appreciation amount.

Base Rent and Fit-out Rents: Don't get confused between basic rent and fit-out rent. As Fit-out rents get problematic as they drop the overall return on the property. While leasing out the price the Fit-out rents make the property price uneven to break.

Lease Structure: The lease structure of commercial properties differs from residential apartments. In the case of residential apartments, the tenants can leave the property after the agreement ends while in the case of commercial properties the lease structure is of nine-year or fifteen years.

Quality: Quality matters as the buyer will always go for a property which is loaded with amenities. The commercial properties should be ideally built and should have maximum space available. Along with amenities, connectivity plays an important role before property buying. The property buyers always go for that commercial area which has excellent connectivity with other parts of the city.

Ekana Mall Lucknow:

Commercial property in Lucknow is slowly growing and many reputed real estate companies have made their base camp in this area. Ekana group is one of the leading brands when it comes to commercial spaces in Lucknow. Ekana mall is one such initiative to provide commercial spaces at an affordable price range. One can find world-class shopping centres, entertainment Nirvana & commercial space included in this project. The developer has taken care of small detailing and blended it with modern architecture. The project comes under an affordable price range and is easily accessible. This commercial space is located at the centre of the city and has many employment hubs nearby. Ekana mall comprises Ekana Mall Bare shell Office Space, Ekana Mall Showroom and Ekana Mall Shop. The amenities are well-developed and have been the major attraction for all.

Ekana Mall Bare shell Office Space has an area of 476 square feet and the price ranges from Rs. 99.37 Lakhs onwards. Ekana Mall Showroom has an area of 235 square feet and the price ranges from Rs. 58 Lakhs onwards. Ekana Mall Shop has an area of 144 square feet and the price ranges from Rs. 28.19 Lakhs onwards.

The property has a huge potential and is perfect for all business owners to showcase their businesses. One should surely invest in this project as the project can help the business ventures to get maximum customer acquisition.