Pierre-Mary Bachelet: Investing in Commercial Real Estate

September 13, 2023

Pierre-Mary Bachelet is an experienced commercial real estate investor, having built and leased more than one million square feet of retail space since 2009. This article will take a closer look at the commercial property market, providing an overview of some of the benefits and pitfalls of investing in commercial real estate.

For investors seeking to diversify their portfolio, real estate is an incredibly attractive option. Whether commercial or residential, investing in property is an excellent means of generating a passive income outside the stock market.

Commercial real estate falls into several subcategories, including office buildings, retail space, self-storage facilities, industrial properties, data centers and hotels. In addition, multifamily properties consisting of more than five units are treated as commercial property and must use commercial financing.

Although investing in commercial real estate has become very popular over the course of the last two decades, it is still technically considered an alternative form of investment versus stocks, bonds, and other equities. Once the remit of high-net-worth individuals, changes in federal legislation enacted in 2012 in the US have made it easier for people to invest in large commercial properties fractionally via crowdfunding platforms. As a result, the market is now open to investors of all kinds.

Financial incentives of investing in commercial property include capital appreciation, the ability to generate a passive income, and attractive tax benefits. Commercial property tends to offer longer leases and higher revenue than residential real estate too.

Diversification is the cornerstone of wealth building, as savvy investors know all too well. Spreading money across various different asset categories means there is less risk of incurring losses should one type of investment perform poorly. Real estate has a proven track record of returns. Investors can also reap significant tax advantages, as well as using it as a hedge against inflation.

In terms of getting started, prospective investors have several options, depending on their investment goals, risk tolerance, and budget. They could purchase a property outright themselves or pool their resources with a partner. An increasingly popular route is purchasing via a syndicate, joining with a group of investors, and providing cash in exchange for ownership shares in the property.

The key benefits of owning real estate lie in the fact that, depending on the property, commercial real estate provides a steady and regular income in the form of rent payments from tenants. In addition, as real estate typically appreciates in value, equity increases over time, enabling commercial property investors to profit again when the time comes to sell.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

Breaking News

New analysis shows majority of estate agents complete HMRC AML registration

Just 5% of branches still need to register More than 24,000 UK estate agency branches have registered with HMRC for money laundering supervision – an increase of around 2,300 branches in just over a year, according to new analysis from client due diligence platform Thirdfort. Some 24,003 estate agent branches across the UK have registered…
Read More →
Breaking News

Gen Z could wait until 2044 to buy a home

Getting on the property ladder has never been tougher, and, for Gen Z, it could take up to 18 years to save a deposit in the UK’s least affordable cities, according to new research from Beswicks Legal, comparing 40 urban centres. The figures reveal that in places like Cambridge and London, Gen Z buyers may…
Read More →
Breaking News

Pressure on landlords takes shine off BTL rate cuts

Buy-to-let fixed rates dipped to their lowest points since September 2022, and choice rose to a record high, according to Moneyfactscompare.co.uk. However, landlords are facing financial challenges, and rumours of more tax reforms in the Budget could hit investors hard. •    Average buy-to-let fixed rates over two- or five-year have dipped to their lowest…
Read More →
Letting Agent Talk

Three steps to pet-proof your property ahead of new pet laws

Landlords across the UK are set for one of the biggest shifts in rental regulation in years as the Renters’ Rights Bill edges closer to becoming law. While the bill aims to give tenants a greater right to keep a pet, a new analysis highlights the stark reality of demand versus supply: with a dog…
Read More →
Estate Agent Talk

Budget-Friendly Ways to Boost Property Appeal

Upgrading a property’s appearance doesn’t always require a hefty budget. One of the most impactful yet affordable changes involves refreshing tired flooring, an element that potential buyers and tenants notice immediately upon entering a property. Carpet remnants have become a smart solution for cost-conscious property owners looking to make meaningful improvements, as they offer the…
Read More →
Breaking News

Naked tenants, basement brothels and maggot rain

When a company specialises in 24/7 property management support, it’s got to be ready to handle pretty much anything, as can be attested to by Adiuvo, whose managers have, on more than one occasion, received tenant requests that have caused them to pause and say, wait, what? Adiuvo has now pulled back the curtain on…
Read More →