Kirk Fisher is an executive-in-residence and MBA instructor at Louisiana State University. A resident of Baton Rouge, Louisiana, Kirk Fisher is also the founder and CEO of Fisher Real Estate, which deals in commercial property.
Commercial real estate is any property bought or constructed to earn capital gains or rental income for the owner. Some of the commercial real estate that can give you the best return on investment include:
1. High Demand Properties
When investing in commercial real estate, you want to choose properties that are attractive to tenants. That’s why properties such as student hostels, apartment complexes, and RV parks are profitable commercial real estate investments. There is always a high demand for these properties, and you can quickly get tenants after completing construction or when a tenant moves out.
2. High-Traffic Properties
If you’re looking to invest in retail properties, these need to be in an area where your tenants are guaranteed a large number of customers who can help them grow their business. With such a property, you’re also unlikely to find it hard to find tenants. The tenants are also likely to renew their lease due to the high traffic, which will ensure you get a consistent return on investment on your commercial property.
3. Triple Net Lease Properties
This type of commercial real estate is a profitable investment for several reasons. One, a tenant is likely to sign a long-term lease (20+ years), which guarantees you a steady income. Two, triple net leases place the responsibility of paying property taxes, insurance premiums, and maintenance costs of the property on the tenant. So, you don’t have to worry that the income you make from your commercial real estate will be wiped out by operational costs.
Many multinationals often sign triple net leases with commercial real estate owners who have properties in prime locations.
