Newport Beach is considered to be a prime address in California. The fantastic weather all year round offers plenty of activities, from sailing to surfing. The arts and culture scene is vibrant and eclectic. There is no shortage of wonderful dining options, both for couples and families. Businesses thrive on tourists and industries like film and TV. In short, Newport Beach is an investor’s dream.
One of the best ways to cash in on this affluent city in the OC is to invest in commercial real estate. Why? First, you get tax benefits like depreciation deductions, allowing you to protect your source of income. Second, it provides a unique investment security since it always has the potential to earn. And third, you get a much higher income stream when you lease a commercial space. Here’s the “but,” though; you need to choose the right Newport Beach commercial real estate asset in order to obtain the many benefits it offers.
Consider your options for the type of commercial real estate. When you want a much more significant cash flow, look for office buildings or retail spaces. You do not necessarily have to go big immediately with a ten-storey office building or massive retail complexes. You want to pace yourself and look at more modest commercial properties that are easier to manage and maintain. For example, a two-level office building with six offices, reception area, conference and data rooms, and storage space would be a good start.
Alternately, you could go for something that has a more striking appeal to particular businesses like creative companies. If you want to lease offices to, for example, design startups, you can look for commercial buildings that have an architectural charm and unique features, like private balconies, that illustrate SoCal living.
Apart from considering your options for types of commercial real estate, you should also value the location. Whether you have chosen an office building or an apartment complex, you want to make sure that your tenants will have access to public transportation, dining and shopping, alternate parking spaces, and other equally important amenities. If the commercial property is within walking distance to retail amenities, then it is even better.
Finally, make sure that you use a professional property management group that can look after your office building, apartment complex, or retail space — from ensuring lease collections are on time to addressing tenant concerns. An investment as significant as commercial real estate calls for proper maintenance and organized administration, which guarantee a stable income stream for a long time to come.