Commercial real estate can be a great place to put money for new investors — but it takes some experience to learn the field. Commercial properties do offer unique potential for return. They are often large and sometimes can house multiple, long-term tenants. But commercial property does require its own forms of upkeep and takes some planning to make an investment work out.

Read on to learn a little more about commercial real estate investment, and some of its potential benefits.


Commercial properties — when carefully chosen — can offer unique opportunities for long-term stability. Commercial leases, for one thing, tend to be longer and more stable than residential leases. Taking ownership of a building with several commercial tenants can thus provide a fairly stable, long-term source of regular income.

Potential for Growth

Commercial real estate is also uniquely valuable. This can have its downside — in other words, commercial properties can often be fairly expensive to purchase. But once you own a property, its value can be a boon to longer-term real estate investments. Commercial property may serve as particularly valuable collateral in taking out new loans, for instance.

More Control

Commercial real estate also offers unique benefits to small business owners specifically: more control over their working space. For example, if you operate a small business but are a tenant in a larger commercial property, owning that property can give you additional control over your workplace. You may have vastly more flexibility to change the layout of your business space, make renovations, and do other changes to help your business. At the same time, you may be able to access additional sources of income by renting out other spaces.

Of course, it is important to also consider the challenges of investing in commercial real estate. Properties are expensive, and it can sometimes be difficult to obtain financing, especially without extensive property ownership history.

Also, if you do end up purchasing a commercial space, you will have to invest time and money to manage it. This will entail taking care of other tenants, addressing structural problems as they arise, and doing similar sorts of work. If you are already quite busy with your primary business, this can be a challenge.

All this said, 1 commercial property does offer the potential for substantial returns. The benefits above suggest some reasons why a commercial property can be a valuable addition to your investment portfolio.