Maybe you have an idea for a small business or restaurant and are looking for a place to set up shop. Maybe you are already an established business and are looking to expand, upgrade, or relocate your premises. There are many reasons why you might want to consider commercial real estate options, but are they really a good investment for you and your company?

If these conditions match your company’s, that might be the case.

  1. Potential for High Income

One of the biggest dilemmas facing buyers of commercial real estate is weighing the cost versus the investment. On the one hand, commercial real estate tends to cost quite a bit compared to domestic properties or leased apartments, but on the other hand, the return can be quite high as well. If, after doing a price analysis, you find the potential income outweighs the initial investment, it may be a great move.

  1. Tax Benefits

Some commercial properties also come with tax benefits. There are certain conditions you’ll want to watch out for here, including depreciation, which can enable you to deduct part of the value of the property from your company’s taxable income. 1031 exchanges can allow you to avoid a capital gains tax in the event you sell the property so long as you “exchange” the profits of the commercial property for another commercial property or asset.

  1. Stable Properties

The world of leasing is full of turnover. That isn’t as much the case when you buy commercial real estate instead. On the contrary, these purchases tend to be for several years at least, giving buyers a greater sense of stability in knowing where they’re going to be based and what the property situation is going to be for the near future.

  1. Fewer Tenant Problems

If you are tired of dealing with problem tenants who don’t fulfill their end of the bargain or leave rented out properties a mess, buying commercial property could be a solution. This can rid you of the need to lease property, and if you do, you’ll be able to have greater control over who’s allowed to stay.

If these conditions ring a bell, purchasing commercial real estate may be a good move for your company.