Why Invest in Commercial Real Estate in Times of Uncertainty by Christopher Sanz, JD, LLM

Posted on April 21, 2021

Asset diversification is a critical component of a sound investing strategy. To counterbalance the volatility of stocks, bonds, and mutual funds traded on the public equity markets, astute investors often turn to commercial real estate and its proven track record for retaining value, preserving capital, and generating passive income.

Commercial property generally involves long-term leases, including triple-net leases for which tenants bear the responsibilities of maintaining the property and covering operating expenses, including utilities, property taxes and insurance. This allows investors to generate rental income without getting their hands dirty or reaching into their pockets to pay for building upkeep and repairs. Moreover, these long lease terms tend to protect commercial real estate investors from pricing instability that can occur during recessions and other times of economic stress.

Historically speaking, commercial property with a good mix of tenants in a growing market can withstand unexpected economic challenges and continue to generate passive income while delivering longer-time appreciation.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.