Commercial Real Estate Madison WI – The Benefits of Investing in Wisconsin’s Capital City.
4 Reasons to Consider Investing in Commercial Real Estate in Madison, WI
The commercial real estate market in Madison WI is a robust one. In fact, it may be one of the better real estate investment options for you today. However, if you are not an active player in the city’s real estate industry, you may need the services of a commercial real estate broker. Hiring a top tier broker will help you get the most value out of the market. Fortunately, Lighthouse Commercial Real Estate can assist you with your investment in commercial real estate Madison WI. We will match you with the perfect commercial real estate broker for your investment needs.
Commercial real estate Madison WI properties offer greater potential to diversify your real estate portfolio than many residential investments. This is because they are the preferred abode for offices, restaurants, medical uses, and other public and private businesses. In case you’re still in doubt concerning some of the potential of adding commercial real estate Madison WI to your real estate portfolio, here are some of the many benefits this investment can bring home for you:
1. Long Lease Duration
Compared to mostly residential single-family houses and smaller apartment buildings, commercial real estate in Madison WI typically attracts longer lease terms. Usually, tenants sign leases for five years or more. With long-term tenants, investors can often get a better return on investment. There is more stability too. You will likely have less tenant turnover.
2. Higher Income Potential
Commercial real estate can provide a much higher income to investors than residential property. As investors, you can earn a return between 6 and 12 percent per year on a commercial property. Comparatively, you make get a 1 to 4 percent return when you invest in residential property. Having said that, all real estate investments are unique in some way. After all, no two addresses are the exact same.
3. Allows for Transfer of Maintenance Responsibilities
In commercial leasing, it is possible to structure your lease agreement in such a way that the maintenance and repairs are handled by the tenant. Therefore, you will have ample time to attend to other important things. This is a great investment opportunity for a savvy real estate investor.
4. Higher Potential With Responsible Tenants
Tenants in commercial real estate buildings tend to exhibit a greater level of responsibility. Often, this is due to the business environment of the tenant. With residential properties, where you may have limited control on families with kids, there can be more wear and tear. Residential property puts greater pressure on the landlord. Sometimes, you will even get calls in the middle of the night to fix toilets or leaks. Despite these hassles, you may still get a lower return on your real estate investment. With commercial real estate, your business tenants often take care of maintenance issues themselves. Your commercial real estate lease can dictate that your business tenants need to handle these issues.
Investing in Commercial Real Estate Madison WI – to Sum it Up
If after reading this page, you feel like investing in commercial real estate, we can help. Lighthouse Commercial Real Estate offers expert commercial real estate broker matchmaking services. You can always find the right real estate agent in Madison when you turn to an expert. If you still want to invest in residential properties, Zipi Wiki offers a real estate matchmaking service for home owners and house investors. Both commercial and residential real estate agents will provide you with the guidance you need for real estate investing.
Usually, you will need a larger down payment with banks when buying a commercial property than will be required on a residential property. So, you may need to plan for this. Often, commercial real estate investors will need at least 30 percent as a down payment. If you are prepared to make larger down payments, commercial real estate Madison WI investments may be right for you.
If you are ready to invest in commercial real estate Madison WI, contact Lighthouse CRE today.