Commercial real estate in New Jersey has a reputation for being a highly attractive investment. It can diversify one’s portfolio, provide steady cash flow and present certain tax advantages. There are also lower vacancy risks, readily available tenants and higher income potential. Even during fluctuations in the real estate market, commercial property investments are likely to remain stable and having a tangible asset can provide much needed reassurance. However, as with any other real estate transaction, it’s important to do your due diligence as an investor. PRE can help you understand if the potential Essex County property fits the investment strategy for your own financial needs and goals.
Why Invest in Commercial Real Estate?
Investing in commercial real estate means purchasing a commercial property intended to be leased out for business and retail purposes. In general terms, it’s any building that’s used for business purposes or to turn a profit. The different types of commercial real estate properties can vary but are most commonly classified into four groups: office, multifamily, retail and industrial.
The appeal of buying into commercial properties is that investors can take advantage of tax benefits, depending on the property type, and generate greater investment returns. It’s of higher risk when compared to residential real estate, however, it yields a much higher financial reward. If done right, investing in commercial real estate has proven to be a very lucrative career both when the market is up and down. There are a number of other benefits to investing in commercial real estate aside from cash flow such as diversifying one’s portfolio and possessing a tangible asset.
What is an Urban Enterprise Zone?
An urban enterprise zone (UEZ) is a designated geographic area that’s in need of economic revitalization. They are used to encourage development within a city where growth would otherwise not be possible. As a result, businesses “in the zone” have been granted special incentives including tax breaks, low interest loans and financial assistance.
Small business owners and entrepreneurs located within a UEZ can therefore access a number of programs that are designed to stimulate job creation and increase employment opportunities. From a real estate developer’s perspective, this presents an opportunity to earn tax breaks in exchange for your investment.
What Investment Services Do We Offer?
At PRE, our investment team represents institutional and private investors in the sale and acquisition of properties ranging from entry-level investment opportunities to major projects.
Commonly associated with lower costs, flexible lease terms and lots of square footage, industrial parks are gaining traction as a popular site for modern office spaces.
Retail properties are intended to house any business that sells products and services to consumers. This asset can be multi-tenanted or a single-use, standalone building.
Investing in multi-family commercial real estate, such as an apartment complex, allows investors to diversify their portfolios while increasing their cash flow.
Purchasing vacant land is often more affordable than traditional real estate properties and investors will find a greater return on their investment over time.
Interested in Investing in
Commercial Real Estate?
PRE has been a leading commercial real estate firm in Essex County, New Jersey for over 72 years. We are able to extend our decades of expertise to local businesses, corporations and entrepreneurs who are looking for superior value on their investments. While investing in commercial real estate isn’t for everyone, it remains desirable for its ability to withstand market fluctuations. It can also provide clients with assets that result in cash flow and tax benefits. Let our team assist you in your commercial real estate investment, as well as provide the tools to manage and improve your growing portfolio.