Is Commercial Real Estate Right for Your Real Estate Portfolio
Is Commercial Real Estate Right for Your Real Estate Portfolio Whether you already own residential rental properties or you are still deciding if real estate investing is how you want to build wealth, the idea of purchasing commercial real estate may have crossed your mind. Is Commercial Real Estate Right for You by Melvin Feller MA According to Melvin Feller MA, a Real Estate Investor, the first, and best, reason to put capital into commercial real estate investing, versus only residential, is the income potential. On average, commercial property has a usual annual return off the purchase price between 6 to 12 percent. Single-family rentals, to provide contrast, generally generate a 1 to 4 percent return at best. One factor that can help secure such profits are higher lease payments per square foot than is typically seen for residential or single-family apartments. Commercial property is either specific buildings or land that is profit generating. It ca...