In recent years the real estate industry has often gone beyond some immediate needs to become a hotspot and preferred project for investment, and commercial real estate is one of those property investment directions.

Commercial real estate in a broad sense refers to a collection of functional buildings other than residential buildings, such as department stores, factory buildings, office buildings, gas stations and other commercial buildings with a profitable nature.

Commercial real estate in a narrow sense refers to various commercial forms, such as shopping streets, convenience stores, department stores, chain stores, shopping centers, etc., centered on the retail industry.

A brief description of three more common commercial real estate investment projects.

Gas Stations

If you look closely at the buying and selling of gas stations, you will find that 90% of the sellers are retired before they sell, and many of them own several gas stations at the same time.

Gas station operations are minimally affected by the economic climate, so no matter what the economy does, people still have to drive or fill up. Profits are maintained at a steady level each year.

Generally, the net profit of a gas station is between 10% and 20%. Compared to fast food restaurants and cafes, gas stations are easier to manage and less risky.

We generally advise our clients to always buy the land below when purchasing a gas station, so that although the total price is much higher, it eliminates the pitfall of not being able to renew the lease in the future.

At the same time, the land has been steadily increasing in value, making it easier to obtain a loan.

Commercial land with long-term leases

If Wal-Mart, the supermarket chain giant, approached you and said, "You buy a piece of land for $1 million and spend $300,000 to build a supermarket on it, Wal-Mart will sign a 20-year lease with you and pay you $100,000 per year, and Wal-Mart will pay your property taxes, insurance, and property maintenance fees.

Are you willing to do it?

The answer is obviously yes, the possibility of Wal-Mart breaking the lease after one year is very small.

Because Wal-Mart needs to spend a lot of money on advertising to attract consumers in the surrounding area, and closing a store would result in a total waste of the initial investment.

Express Hotels

Express hotels are also commercial properties with a relatively high return on investment, ranging from 15% to 30%.

Compared to gas stations, they require a higher level of management experience and take more risk.

Investment budgets for well-located express hotels start at $5 million.