Good News – Industry Property Sector is Posting Continuous Gains | Harvey Hanna

Good News – Industry Property Sector is Posting Continuous Gains

August 12, 2014

The demand for industrial space and medical office space has grown across the nation. For real estate investors, this is good news. However, understanding the rewards versus the risk is essential to making wise financial decisions when investing in real estate.

Are you considering investing in commercial property?

Often, commercial properties are more lucrative than residential properties. However, the higher chance of profit comes with greater risks. Here is an excellent article regarding the ‘Pros and Cons of Investing in Commercial Real Estate’ that can help you gain a clearer picture.

One incentive to investing in commercial real estate is the greater potential for return. It is estimated that the annual return on commercial properties can be between 6-12 percent, while residential is 1-4 percent.

There is also the factor that the business owners that will be leasing from you have a natural incentive to properly maintaining their stores or office space in order to retain customers and make a good impression. Adversely, residential leasers often lack this incentive and can be lax in maintaining or even informing the owner when major issues arise.

However, as a commercial landlord there is a bigger time commitment, investment and risk. What is your opinion? Do you think now is a good time to invest in commercial real estate?


Harvey Hanna & Associates provides the creative commercial real estate solutions to the Mid-Atlantic region, assisting start-ups to fortune 500 companies find the right solution for their particular needs. We offer real estate investments, property management, industrial, manufacturing and retail properties, as well of professional offices and distribution centers.