The Worcester, Mass. retail industry is picking up, but what are the real advantages of getting in as a commercial real estate investor and owning one of these properties?
Various retailers are busy expanding in the Worcester, MA market. Recent statistics show stores experiencing rising sales, and while slow the economy and employment is improving. This is all great for store owners, but there are many more benefits for those investing in the actual real estate they rent.
There really couldn’t be a better time to invest in retail property. It is really just warming up. As a whole the U.S. real estate market is just now getting back to ground zero. Based upon historical cycles this means another 7 to 15 year growth cycle coming up. With retail just catching on again this means it should also provide investors the longest growth cycle of property sectors going forward.
2. Diversity [Income Streams]
The need for diversity in a portfolio is no secret. The beauty of retail whether it is a local strip mall or a massive shopping center is that it offers additional diversity within a single investment with multiple sources of income. This provides for consistency in returns and avoids relying on the performance of a single tenant.
3. Diversity [Industry]
Perhaps even better than the above multi-tenant retail investments offer the advantage of diversity of a variety of industries. Everything is cyclical, you can’t stop that. But you can defend against it and maximize returns through it. If one tenant’s industry or even real estate in general is taking a beating it doesn’t have to affect investment returns providing a good mix is maintained.
4. Truly Passive Income
So many investors get into the residential rental market as landlords in search of passive income, only to find it is anything but. With the assistance of a full service Worcester property management company retail can deliver truly passive income that turns in positive cash flow month after month without ever having to lift a finger (or a plunger), or field a single tenant phone call.
5. Passive Wealth Building
The high yields and regular cash flow retail can deliver isn’t even the best part. With this timing and even modest appreciation commercial real estate investors stand to benefit from ongoing passive wealth building at the same time.
6. Control Over Value
While there are certainly macro factors at work too, investors of retail properties have far more control over their own property values than most other real estate investors. Value can be added at any time in any phase of the market cycle through improvements and positioning.
Looking at the extreme volatility of the stock market from recent IPOs like Twitter’s it’s clear that the security of a tangible direct investment in brick and mortar retail is an essential haven for everyone to have in their portfolio.