Commercial Investment Properties
Commercial investment properties are those that are used specifically for business purposes. This means that an investor has no intention of taking up residence in the property. Beyond that, commercial investment properties can take on many forms. Some of the most common are retail centers, office buildings, and industrial properties. For the investor, a commercial property has the potential to generate considerable income. However, as costs are generally higher and the performance of a commercial property is often linked to several businesses or renters, the risks can be higher. These added risks often deter investors in residential investment properties from making the leap into the commercial property market.
TICs (Tenants in common) programs can serve as a foray into the world of commercial investing while limiting risk. When you invest in a TIC, you purchase only a portion of the property, as opposed to buying it outright. This enables you to tailor the purchase to fit your financial needs and goals.
Taking advantage of tax deferral tools such as 1031 exchanges can also make commercial investment easier on the investor. A 1031 allows you to take the gains from the sale of a property and reinvest them into another property while deferring the capital gains tax on the sale of the initial property. At TM 1031 Exchange, we work with brokers and investors to help them find commercial properties that offer the best possible match. To learn more about 1031 requirements and to start searching for commercial investment properties, email team@tm1031exchange.com or call 1-877-4-TM1031.
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