At Northern Edge Real Estate, we specialize in assisting clients with many aspects of commercial real estate in the Anchorage and Mat-Su markets— from portfolio management and lease management to acquisition analysis, disposition planning, exchanges, landlord representation and tenant representation.
It is our goal to drive the standard in lease marketing and representation in the Alaska commercial real estate market, applying our expertise to help you boost your commercial asset profitability. If you’re on the fence about investing in Alaska commercial real estate, below are several reasons you may like to consider.
Why Commercial Real Estate Is A Great Way to Build Wealth
1. Appreciation of asset value
Among all investment opportunities, commercial real estate has historically ranked among the best in terms of appreciation in value. Properties can see a rise in value due to factors such as wise improvements and excellent management, in addition to supply and demand of the market.
2. The income stream
Naturally, investing in real estate has a heavy emphasis on profitability, so the potential income stream is a place to turn your focus. Your asset will likely be secured by a commercial lease which can provide regular income that is oftentimes higher than any stock dividends.
3. The leverage
The leverage commercial real estate offers is a popular perk for many investors. This means you are able to place debt on your asset, in most cases several times the original equity, and in turn, purchase more assets with less money. As the loans are paid down, your equity grows.
4. Tax benefits
As a property owner, you are able to deduct mortgage interest and depreciation from your income. Depending on the type of property you own, this can be quite beneficial when it comes to your annual tax bill.
5. Hedge against inflation
Compared to other investments like stocks and bonds, commercial real estate investments had the highest correlation to inflation. In fact, when inflation occurs especially as the US attempts to prompt economic growth, the price of real estate also rises— thus, your asset acts as a hedge against inflation.
Investing in commercial real estate can be a lucrative decision and we are happy to guide you through the process! Give our team at Northern Edge Real Estate a call today!