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.
As a business owner, you have a lot of responsibilities on your plate, the least of which being the minutiae of your office or industrial lease. This is where a tenant representation consultant can be highly beneficial - helping you navigate the lease renewal / expansion / relocation and negotiation process while advocating for you and your business. In a competitive marketplace like Denver, it’s even more important to have an experienced advocate working on behalf of your business. How do you find a qualified and skilled professional, though? Here’s the all-inclusive guide to finding a quality tenant representation specialist in Denver.
As a business owner, you have a lot of pressing things to worry about, not the least of which is your office or industrial lease. For most business owners, the never-ending to-do list means enlisting the help of an experienced tenant representative when the time comes to negotiate a lease. As a CCIM-designated commercial broker, Lowrey Burnett of Fountainhead Commercial, has worked with a wide variety of businesses and business owners throughout the leasing process to include attorneys, accountants, financial services, oil and gas, engineers, fitness, product distribution, product manufacturing, contractors, marketing, medical, etc. As a commercial tenant, there are certain responsibilities that fall to you. The Fountainhead Commercial team has put together this guide to help commercial tenants make the right choices throughout every stage of the leasing process.
Investing in commercial property has a high barrier to entry, but it can be an extremely lucrative route for those who choose to do it right. Investing strategically is the key, though. Without an investment property expert guiding your decisions, you won’t be able to achieve the returns you’re looking for. With many years of experience serving as the commercial broker for those investing in commercial property, we’ve developed the industry prowess to help our clients build a portfolio of investments that is right for them. Let’s discuss what you need to know about the commercial real estate investment opportunities available.
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Denver, CO
