Boston Commercial Real Estate Listings
When it comes to investing in prime commercial real estate, Boston is a dream come true. For the last several years, the city has been experiencing major growth in a variety of sectors. From a strong job market to a thriving real estate scene, the city is awash in exciting opportunities for savvy investors. With all of that being said, identifying the right Boston commercial real estate for investment purposes isn't always easy. The market is very fast paced and extremely competitive, so it's crucial to have access to the right resources. By connecting with Boston City Properties, you'll enjoy that and much more.
About Boston Commercial Real Estate
Investors often focus their efforts on single-family homes when it comes to real estate investments. Those who branch out into commercial real estate often stick with apartment buildings. However, there are tons of categories within the commercial real estate segment that are bursting with great opportunities. With low vacancy rates and many successful, stable businesses in the area, Boston is an excellent place to locate prime commercial real estate investment opportunities. By availing yourself of Boston City Properties' resources and assistance, you'll achieve your goals more quickly and easily.
Why Invest in Commercial Real Estate in the City?
There are plenty of places to find commercial real estate for investment purposes. Why choose one that's located in Boston? First, there are the rock-bottom vacancy rates, which mean that your odds of finding and keeping stable tenants--and continual rental income--are much higher. Second, Boston's economy is on fire, and its job market is thriving too. In addition to boasting many established, major corporations, Boston is home to a number of innovative tech companies and startups. There's truly something for everyone.
Benefits of Investing in Commercial Real Estate
Boston City Properties can help you locate prime pieces of commercial real estate that will generate considerable income. However, perhaps you're not sure that you even want to invest in commercial real estate. That is particularly true if you've mostly focused on residential real estate in the past. If so, commercial real estate can be fairly intimidating. Still, once you understand the benefits of doing so, you are sure to agree that it is worth a try. With our help, you'll be on your way to successful commercial real estate investing in no time.
A few key benefits of investing in commercial real estate include:
• Excellent Income Potential - When investing in residential real estate, like single-family homes to use as rental properties, you can expect an annual return of 1 to 4 percent on average off of the purchase price. With commercial real estate, however, annual returns typically fall into the 6 to 12 percent range, so you stand to make a lot more.
• Longer Lease Terms - One of the biggest headaches that landlords of single-family home properties have to contend with is a high rate of tenant turnover. Unlike leases for residential homes, which are usually for one year but can be for even shorter periods of time, commercial leases tend to be quite long. It's not unheard of for them to extend out to as long as 10 years. This produces more stable and reliable income.
• More Conscientious Tenants - Finally, since businesses are leasing space in commercial office buildings and the like, they have a vested interest in properly maintaining the premises. Unlike renting to individuals, who may leave the place in much worse shape than when they got it, businesses tend to properly care for their properties. You're far less likely to end up with a huge mess to clean up.
About Commercial Real Estate in Boston
With more than 667,000 people in the city itself and more than 4.7 million in the metro area, Boston is large enough to support a very robust economy. This means that there are plenty of opportunities for those who would like to invest in commercial real estate, including office buildings, hotels, multifamily properties and retail stores. At $363 billion, Boston boasts the sixth largest economy in the U.S. At the same time, commercial real estate vacancy rates are at near historic lows, so competition for prime properties is fierce.
Over the last three years or so, landlords of commercial properties have benefited greatly from double-digit rent growth. This trend has slowed down a bit, but it isn't expected to reverse course anytime soon. Those who already owned commercial properties at the start of the rebound of the economy are sitting pretty right now, but it's not too late for others to get in on the action. Across all Boston neighborhoods, but especially in business districts like downtown, the Financial District and newly popular areas like the Seaport, commercial real estate has proved to be a huge moneymaker for savvy investors.
Tips for Making the Most of Commercial Real Estate Investing
As you have probably already surmised, it's no secret that Boston has a lot to offer when it comes to commercial real estate investing. As a result, competition tends to be fierce for the most in-demand properties. However, you don't have to be a seasoned investor to benefit from the robust real estate market and economy. You just need to remember that investing in commercial real estate differs considerably from investing in residential real estate.
We've rounded up a few key tips for making the most of your commercial real estate investing adventure:
• Find a Niche - Chances are that you have some sort of comfort zone when it comes to investing in real estate. If you are moving over from investing in residential real estate, you may be tempted to focus on multifamily properties like apartment and condo buildings. However, it pays to branch out and to explore other opportunities. It could very well be that you will experience greater success in a different niche. Be receptive to investing in other types of properties, including retail stores, office buildings, warehouses and hotels, to give yourself the best odds of success.
• Learn the Benchmarks - If you've never invested in commercial real estate before, you're in for some pretty big changes. For example, the formulas that are typically used to assess the potential of a property differ considerably from those that are used to assess residential properties. Educate yourself about what good cap rates or promising net operating income look like. Study up on these and other concepts to make the most informed decisions possible.
• Take Your Time - Sure, you're probably eager to hit the ground running with your commercial real estate venture. Boston City Properties is ready to help. However, a word of caution: You need to take your time and move slowly--especially at first. If you want to invest in truly effective properties in the city of Boston, you need to weigh plenty of options and do a lot of research. Taking the extra time may be frustrating, but it will pay off when you end up with a truly lucrative property.
• Take Care of Financing First - You aren't going to get very far if you start looking at properties without knowing where you stand in terms of financing. Before doing anything, then, get your financing square away. Be prepared for a bit of sticker shock when it comes to the down payment, as it tends to be higher with commercial real estate than with single-family homes and other residential properties.
• Thing Long Term - When assessing the income potential of a piece of commercial real estate, don't just focus on the here and now. Think ahead to determine what kinds of expenses you will face in the years to come. For example, how old is the building? How old is its roof and other major structures and systems? If anything major will need to be replaced in the somewhat near future, make sure to include those costs in your budget.
How Boston City Properties Can Help
Boston City Properties wants to help you find the right Boston commercial real estate to invest in. We will give you immediate, free access to our searchable online database of MA real estate listings to get you off to a good start. You can restrict your search to the precise Boston neighborhoods that you want and use filters to zero in on properties that suit your needs. Later, we can also connect you with real estate agents in the city who can assist you further. For more information, call Boston City Properties today.