Investing in real estate has proven to be a great way to build wealth. Commercial real estate (CRE) investments, in particular, can provide consistent streams of income compared to residential real estate properties. If you’re interested in commercial real estate investment opportunities in Denver or elsewhere in Colorado, you’ve come to the right place. We’ve put together a comprehensive guide of need-to-know tips for commercial real estate investing in the metro area as well as statewide.
So, you’re looking for a new commercial real estate space for your business. That’s great! Operating in the right office or warehouse is a key factor in achieving long-term growth and success. But finding the right fit for your business in Denver’s competitive commercial real estate market is often a challenge unless you have an unlimited rental budget. Selecting the right space—and successfully negotiating a lease you can afford—are no easy feats. To avoid potential pitfalls, it’s wise to seek out the professional support of Denver tenant representation services.
Every landlord wants to attract creditworthy tenants to their property. However, that’s often easier said than done. As a landlord, you have a long list of responsibilities and day-to-day tasks that must be completed. By working with a landlord representative, you can ensure you unlock your property’s full potential and find well-qualified, long-term tenants. If you’re interested in learning more about Denver landlord representation, we’re here to help.
Investing in commercial real estate (CRE) can yield secure but modest returns as well as high investment returns if you go about it strategically and understand the risks. Comparatively, U.S. Treasury yields are at/near all-time lows in 2020. In this article, we’ll cover the ins and outs of commercial property investment in Denver so you can determine if it’s right for you.
Let’s examine the different types of investment.
If you own the commercial property in which your business operates, you’re probably familiar with the various opportunities available should you need more liquid capital to maintain current operations, grow, and scale your organization. Simply defined, a sale leaseback offers property owners the opportunity to sell their physical property and simultaneously lease it back from a new commercial real estate investor under a long-term lease without disrupting the business. This is a mutually beneficial transaction for both the business owner and the investor. The business owner gains an immediate working capital infusion into the business from the commercial real estate sale while the investor receives the long-term rental income from the seller-now-tenant. The transaction may sound technically complicated, so if you’re considering this kind of transaction, it’s worth finding an experienced sale leaseback broker to help you navigate the process.
When a business needs to access capital, there are a couple of options. You can elect for traditional debt financing, dilute your equity with capital raised from additional investors or you can consider a more innovative option, such as a sale leaseback transaction (often written SLB). This transaction entails selling the commercial real estate property you own (where your business operates) to an investor on the open market then leasing it back from the investor (buyer) under a long-term NNN or Absolute NNN lease agreement without ever having to relocate your business. With the right commercial broker in your corner, a sale leaseback can be a great financing tool that helps you take the right steps forward as a business. It’s important to recognize the advantages and disadvantages of a sale leaseback before embarking on this type of business decision, though. Let’s review some of the most important pros and cons of this transaction.
720.837.9407
Denver, CO
