Commercial Real Estate Investment Benefits

December 30, 2022

Houston Commercial Real Estate (CRE) investment benefits such as those seen by Capital Real Estate Commercial clients, are numerous but if you're new to the market or even if you are an experienced investor, there are unique methods and advantages to investing locally of which you should be aware.

Despite the inevitable fluctuations seen in all investments, demand for Houston real estate remains very high. With thousands moving to the area each month, you might think the demand is limited to residential real estate such as single-family homes but demand for new apartment complexes is soaring and along with all those new residents comes increasing demand for commercial services and employment opportunities. Those factors make investment in commercial, retail or industrial real estate and facilities equally attractive

Among the best and often overlooked benefits of Houston commercial real estate investing is that it gives you a path to invest in a minority position in a property. Known as Equity Investing, this gives you a chance to begin investing limited resources while usually limiting your exposure. You get to learn with limited risk while seeing your investment appreciate. You can continue in the equity investing direction or expand towards greater investment shares.

Another benefit and the one most commonly cited is for the Cash Flow created from commercial or industrial Houston property. Developed, leased or rented Houston commercial property generates steady cash flow and income that can be realized at various intervals such as monthly or annually. This is especially helpful in forecasting and budgeting as the revenue is predictable.

Houston Commercial Real Estate investors also have the opportunity to diversify their investment portfolio. This portfolio diversification is simply a sound investing practice particularly in dynamic economic conditions. Risks while low, are typically further reduced by spreading you capital in different investments.

Investing also creates assets for you. While values may rise or fall in the short term, the asset - the physical property - remains regardless of market fluctuations. And because that asset remains intact, the potential for future profit and cash flow always exists for you.

Often among the biggest benefits commercial real estate investors cite are related to tax reductions via depreciation. While the aspects of tax code and commercial property investment are too complex to adequately explore in this article, the team at Capital Real Estate Commercial are here to help you and your tax professionals maximize the advantages of owning or investing in Houston commercial or industrial facilities and property.

There are many other Houston commercial real estate (CRE) investment benefits such as inflation protection and leverage for additional investments that we'd be happy to discuss as part of your investment strategy. Houston CRE investments have historically performed better than the Standard & Poor’s 500. And while historic performance is no guarantee of future results, we see nothing to change that performance over the long run. Click here if you’d like to see some of the Houston area commercial property we currently have available. If you'd discuss investing in Houston commercial property, please give us a call at 713-681-1100.