What is Commercial Real Estate, Anyway?
Commercial property denotes real estate as restaurants, shoe stores, office buildings, designed for and in areas zoned for business. Generally speaking, the goal is to generate an income stream from owning the property and make a profit when sold. Apartment buildings and skyscrapers, retail store buildings, and the shopping malls that support them, or manufacturing and warehouse spaces, are commercial real estate examples.
The CREM group represents residential properties and commercial properties and provides commercial services to support these properties, primarily in Southern California’s Los Angeles and Orange Counties. A building or plot of land designated as industrial property changes how the property can be financed, and how taxes and other laws are applied to it.
Investing in Residential Property and Commercial Property
As the CREM Group representatives help our clients buy and sell homes, we find some of the best “deals” for our clients from the pool of properties in probate, trust, or a conservatorship. A probate property has benefits that might make a residential property work well as a residential investment property. The beneficiaries can fix up the family homestead after it has cleared probate, and rent it out to provide some extra income, for instance. If it was “grandma’s” home, sometimes family members want to keep the property for their personal use. It’s a private decision that must be agreed upon by the family. Beneficiary disagreements are difficult, as we have discussed elsewhere. Investors looking to buy probate homes can often achieve lower costs if they’re willing to wade through the longer buying cycle. Probate homes are one thing. Commercial properties are something else.
In contrast, commercial properties can be part of grandma and grandpa’s estate as well, and they will still go through the probate process. Commercial property has been seen as a sound investment in the BC (Before Covid) era. It’s scary to think of buying a commercial property these days. Nonetheless, a visionary land developer could buy a piece of undeveloped commercial real estate languishing in probate. By the time the lengthy probate process (which could be a deterrent, to be sure) is over, investors could have the property ready to go when the pandemic is long gone and make a good profit from the investment. It takes guts, but it’s not a bad idea.
Commercial properties offer bigger risks, bigger returns
An industrial building’s primary investment costs and the expenses associated with customization for tenants are much higher than the equivalent residential real estate costs. The CREM Group is well equipped to help our commercial clients with these decisions.
We can handle large and small commercial real estate transactions with our team of experts that we have collected over many years to help private, corporate and institutional investors realize each of their objectives. By infusing progressive-professionalism into each commercial real estate transaction we service, we deliver quality and trust whether it’s leasing or sales, retail or restaurant, office or industrial, tenant or principal. We shun “the one size fits all” mentality regarding representation, which is why our focal points include individualized and value-centric approaches maximized to accomplish every goal for each of our clients with competency and creativity.
How residential investment property differs from commercial property
A residential property investor looks at several factors, including the emotional attractiveness of a property to the prospective tenants. A commercial investor in various properties will look at the financials to see if there is income potential. Residential property investors will often require some of the same services as commercial property clients. With the CREM Group, it’s all under one roof. You can go either way, and we’ll be happy to help you. The CREM Group does it all.
1. PROFESSIONAL MANAGEMENT SERVICES
2. LANDLORD REPRESENTATION
3. TENANT REPRESENTATION
Our real estate agents specialize in probate for homes, residential investment properties, and commercial real estate. Our team has overseen the moves of top restaurateurs, retail, and creative local businesses throughout the LA and Orange County coastal markets.
Covid-19 has hurt many businesses, but we are confident we will get through this pandemic. Please see our post on interest rates to give you another way of deciding if industrial or residential real estate investments are right for you.
Bottom line
ALWAYS USE PROFESSIONAL REAL ESTATE AGENTS WITH A GOOD TRACK RECORD, EXPERIENCE IN THE GEOGRAPHY, AND EXCELLENT COMMUNICATION SKILLS. Check with reliable, professional probate real estate agents with resources they trust to help you make sound business decisions. Commercial property held in a probate, trust, or conservatorship is not different than residential property. Our experienced probate realtors can guide you, and this might be a perfect time to purchase commercial real estate waiting to clear probate.
As always, contact us by email here if you have any questions about real estate, probate real estate, trust real estate, and conservatorship real estate, especially in Los Angeles and Orange Counties in California (currently expanding to Riverside and San Diego).
Mark Cianciulli, Esq. [email protected]
DISCLAIMER: This content is meant purely for educational purposes. It contains only general information about real estate and legal matters. It is NOT legal advice and should not be treated as such. We recommend consulting a legal or tax professional before acting on any material, opinion, or point of view described herein.