Real estate investors in West Palm Beach, Florida, and around the country often begin by purchasing single-family residences, but many of them soon switch their focus to commercial properties like stores, offices, restaurants and warehouses. Commercial real estate generally provides higher yields, has less demanding tenants and is not as risky as residential property speculation. For landlords, the difference between commercial and residential property investing can be significant.
It is not uncommon for residential landlords to be called out on weekends or evenings to mediate petty squabbles between tenants or address a minor issue like a running toilet or an unusual smell, but companies that rent commercial space will rarely make unreasonable demands. Commercial tenants may also employ their own maintenance staff to take care of minor repairs, and they sometimes cover some of the expenses traditionally paid by residential landlords.
Another benefit of renting to successful businesses instead of individuals or families is that they will usually be extremely reluctant to move. While moving is an inconvenience for residential renters, it can be a disastrous business decision for established companies with loyal customers. Business districts also evolve and change over time, and commercial real estate investors may reap significant rewards when areas that were once known as warehouse or manufacturing districts transition into upscale shopping and dining destinations.
While renting out commercial properties can be lucrative, landlords who wish to avoid time-consuming and expensive legal disputes may be wise to choose their tenants carefully. The experienced West Palm Beach Real Estate Attorneys at The Law Office of Ryan S. Shipp, PLLC may be able to help avoid poor decisions by conducting thorough due diligence on prospective commercial tenants before lease agreements are signed. The Law Office of Ryan S. Shipp, PLLC also has extensive experience in drafting commercial leases that protect the interests of landlords while offering business tenants the flexibility they need to grow and thrive. Call us today @ 561.699.033 to see how we can assist.