Looking for a promising real estate investment opportunity in the neighborhood?
Are you someone who wants to diversify his/her investment portfolio?
Is residential real estate not your cup of tea?
If your answer is no, then we suggest you invest in a shopping mall today.
There are many benefits and rewards attached with investing in a shopping mall. It is not only a safe and secure option but it also provides you with a steady source of income. Some people prefer residential properties over commercial properties and vice versa. In short, the ‘commercial real estate vs residential real estate’ debate is always under the limelight. In short, retail is a type of commercial real estate investment that is always a good choice for investors.
Want to know more about the benefits of investing in a shopping mall as an investment?
This article is all about shopping malls as an investment opportunity. Let’s have a look at all these major benefits.
Benefits of Investing in Shopping Mall
- Easy-to-lease Commercial Areas
- Less Risk
- A Simple Form of Investment
- New Lifestyle Trends
- Diversification of Portfolio
- Professional Ties
- Property is Maintained
- Shared Amenities
1. Easy-to-lease Commercial Areas
Interestingly, it is quite easy to lease out commercial properties such as shopping malls and retail outlets. The government is very flexible in giving lease to the investors.
Unlike other real estate investment options, commercial real estate comes with less security deposit limits and termination rules.
2. Less Risk
Every investment comes with a certain level of risk. Risk cannot be ignored completely. However, with sound strategy and well-informed decisions we can mitigate the risk associated with investing in real estate.
When it comes to a shopping mall, the risk is low because it is spread across many people. When you buy a house, you are solely responsible for the risks attached to it. This is not the case with shopping malls because it is a shared space. This attribute also makes it a safe and secure investment option in Pakistan.
3. A Simple Form of Investment
If you are new to real estate investment, go with simple real estate options. By simple form what we mean is that you should select options that are secure and offer good returns. Shopping malls yield good returns as long as you are diligent.
Shopping malls as a form of investment are also simple because both new and old investors understand how shopping malls work. There is no rocket science behind it.
4. New Lifestyle Trends
By analyzing the latest lifestyle and shopping trends, it is safe to say that the trend of shopping malls will not be dying any time soon.
The economic importance of shopping malls is also improving due to changes in the lifestyle of people.
Now, instead of hovering cluelessly in the markets, people look for one-stop shops or all-in-one mall where they can get all the things they want.
Hence, to cater to the increase in demand for shopping malls, realtors will build more malls to meet this increasing demand. In short, investing in good shopping malls will definitely be fruitful in the future.
5. Diversification of Portfolio
Shopping malls are an excellent option if you want to expand your portfolio. In today’s fast-paced world, diversification is important. Shopping malls are known to deliver safe and consistent results over a span of time.
They offer good passive income opportunities and ensure that your portfolio remains on track. If you are looking to shift to a new niche, shopping malls are perfect for you. If you are still confused read house vs shop where to invest?
Also, apart from the diversification in property, you will experience diversification in tenants as well. Your tenants may include; food, banking, health and beauty services, automotive, and technology, and more. In short, it is easy to attract a stream of potential tenants.
6. Professional Ties
If you are an investor who prefers good professional relationships, then shopping mall investment might be an excellent opportunity for you to get connected with like-minded people.
Owners of commercial properties are usually MNC’s and business owners. Unlike residential property owners, the owners of commercial properties firmly believe in B2B relationships which are built on professionalism and courtesy. When you are investing in real estate you should seek out someone who knows the ins and outs of real estate to guide you about mistakes to avoid when investing in real estate.
7. Property is Maintained
In the residential sector, tenants usually harm the property. They break things around the house and make no efforts to keep the place maintained. Get to know whether to invest in a house or not.
On the other hand, commercial properties such as shopping malls are well kept and maintained at all times. A huge chunk of sales comes from the outlook of shops, so the tenants leave no stone unturned to keep the place clean and tidy.
8. Shared Amenities
When you invest in residential properties, you have to pay for every single thing because you are the sole owner of the place and it is your responsibility to arrange all the amenities for the tenants.
One of the biggest benefits of investing in a shopping mall is that you do not have to pay for all the amenities. The mall owners usually set up power systems, decor, security, and vice versa.
So, these were some of the major benefits of investing in shopping malls. Buying shopping centers is one of the best ways to secure your hard-earned money. Shopping center investments come with multiple benefits. Apart from getting a tangible asset, you also get monthly rentals and high ROI. What else do you need in a good investment?
If you have any queries or suggestions, let us know in the comment section below. We will be more than glad to help you.
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