Commercial real estate in Denver scene has an eclectic mix of new construction and buildings years or even decades old. From high-rise buildings, office complexes, big-box retail, light industrial warehouse spaces, hotels, residential apartments/condos… you name it… there is some sort of property available for lease. Having properties under management (both owned and leased) is important when evaluating property investment returns. The more diversified your holdings are across property types and locations, increases your ability to manage risk throughout your portfolio, which can lead to higher overall returns over time. And with each holding type comes different metrics to consider. For example, commercial debt finance service coverage ratios tend to be lower than typical residential mortgage debt service ratios. After all, they are generally held at a lower leverage level—which is good for investors because they need less cash flow per unit to make their loan payments each month. And because commercial debt can typically be used on both older and newer property types, there’s also the benefit of depreciation recapture, which provides capital value growth via free cash flow. Bottom line: if you invest wisely in commercial real estate, you have potential upside because it is considered a long-term asset class versus other investment options.
Commercial Real Estate services can be a bit intimidating if you don’tdon’t have a good grasp of what they entail. However, it’s worth knowing that commercial real estate services can help take a lot of financial and logistical burdens off your plate as a small business owner. Commercial real estate in Denver , or CRE, is any property designed for use by businesses. It includes buildings used for office space as well as parking lots and warehouses. To better understand how CRE will benefit your company, read on about three different commercial properties available in downtown Denver: The Pavilions @ City Park, Market Station Parking Garage, and Thornton Place.
At its core, commercial real estate is all about renting outbuildings. When you own a building that houses, say, a retail store or an office, you are that building’sbuilding’s landlord. You agree with another party—the tenant—to permit them to occupy your property for an agreed-upon amount of time (typically one year). The tenant typically pays rent each month—this is known as ground rent or lease income. The more ground rent you collect each month, the better off your business will be financial. Ground rent isn’t guaranteed by any stretch of the imagination, though; if it turns out no one wants to lease your property at all, you won’t make any money. That’s why commercial real estate investors tend to diversify their holdings across multiple properties and projects. Then, even if they lose on one deal, they can recoup their losses from others. Another key component of commercial real estate is capitalization rate—or cap rate for short. This metric tells you how much value a building creates over and above its total cost. Commercial property owners want to generate high cap rates to enjoy higher profits on their investments than they would otherwise get on straight cash flow.
Location is important, but so is square footage and the building’s age. Several types of commercial properties are available for lease or purchase, including retail, industrial, office, medical, and multi-family. Commercial buildings serve many functions—sometimes several at once—and no one type fits every business owner. Commercial Realtors specializing in commercial property can help analyze your needs and find just what you’re looking for. If you’re looking for someone to teach you about the different types of commercial real estate services Denver has to offer, then get in touch with us today! We’llWe’ll make sure that when it comes time for you to buy or sell commercial property, you won’t be left without options. Here at Westwood Commercial Realty, we specialize in commercial real estate in Denver. We want our clients to be educated on their commercial property investment decisions, which is why we provide them with valuable information like how commercial space works and things to consider before renting or buying a building. Feel free to give us a call today if you have any questions about commercial real estate Denver, leasing versus buying commercial space, or want to set up an appointment with one of our expert commercial Realtors. You don’tdon’t need an agent referral (although some owners do require one) to contact Westwood Commercial Real Estate. All you need is knowledge of commercial properties and experience working within your budget; we take care of everything else. Our goal is not only to guide through all aspects of buying or selling a commercial property but also to protect client’sclient’s interests during negotiations by representing their best interests first and foremost throughout each transaction.