Commercial Real Estate Businesses Land Leases
Lending Buying Selling Careers
I know buildings, energy, construction and the real estate business. I have been helping Connecticut 
Buyers, Sellers and investors for 40 years. I have built 12 homes and completed commercial building inspections on $36,000,000 worth of real estate.
I have completed over 1300 decorating and renovation projects, 100+ energy audits, designed, built, and shipped a zero-energy home to Germany, and I am a trained building analyst and land-use consultant.
Real Estate and Construction have been my life, Art is my passion so Connecticut Real Estate also owns The Connecticut Art Gallery.
Buying Commercial Property in Connecticut?
Call or text Steve Schappert for all your commercial real estate needs. 203-994-3950
100 of the newest Connecticut commercial property listings are below.
Benefits of Buying Connecticut Commercial Real Estate
Are you on the brink of taking office space on a lease? Think again. For those who want to save money and increase their cash flow in the initial days of business, leasing may be a better option. But for those entrepreneurs who have substantial financial resources and want to enjoy the tax benefits that come with property ownership, buying a commercial property is the perfect solution. Here are its top advantages:
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Greater Value Appreciation
It has been observed that commercial properties have a greater appreciation in value than any other type of investment. There are internal as well as external factors that contribute to such appreciation. Internal factors include effective management of the company and an increase in the functionality of the property through cost-effective renovations. The demand and supply imbalance works as an external factor.
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Regular Source of Rental Income
Commercial real estate is the biggest asset a company can have. The extra space can be leased out to other commercial enterprises. This ensures constant cash inflow. Yields from leasing a commercial property are much higher than dividends from stocks.
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Protection against inflationary forces
Generally, when there is an inflationary trend in the market, commercial property investors get the maximum benefit. The reason is that the rate of inflation and the rate of appreciation of commercial property prices are correlated with each other. As one increases, the other experiences an upward trend as well. This is in the case of those properties which have high replacement and labor costs associated with them.
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Secure investment
A significant advantage of owning a commercial property is that it is a very secure investment. This means that the owner can always earn income from the property because there is a high demand for rented commercial space. This is a tangible asset that has a good intrinsic value. The owner can take a loan several times the equity of the commercial property to purchase more assets and then pay the original loan with the profit from the new investments.
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Tax benefits
There are several tax benefits associated with commercial real estate purchases. The most significant ones are the tax exemption for mortgage payments and depreciation deductions. A major part of the income can be saved with the help of these tax code benefits. These are just a few reasons why you should consider buying a commercial property instead of leasing it.
Commercial real estate refers to the property that is used for conducting business transactions and for office work. The range of commercial properties is expansive including everything from gas stations to industrial hubs, shopping centers to departmental stores. What sets commercial real estate apart from residential properties is the method of rent payment. The lease amount is paid annually based on the amount of space occupied (calculated in square feet) instead of monthly payments. Generally, an investor buys a whole plot of land or a building and leases it out to different commercial operations.
“A Buyer’s agent represents the interests of the buyer in a real estate transaction.
The Buyer’s agent’s responsibilities to the buyer are undivided loyalty, obedience, diligence, disclosure, confidentiality, accounting, and reasonable skill and care. All duties are fiduciary — they are owed exclusively to the buyer – NOT to the seller.” – CT Dept. of Consumer Protection.
Hiring Connecticut Real Estate is the best decision you will make regarding buying real estate in Connecticut. When NBC, Kiplinger’s Financial, Woman’s Day Magazine, The New York Times, Real Estate For Dummies & The Learning Channel (TLC) wanted to learn more about buying real estate, they called Steve Schappert and you should too!
Lease Types
There are basically four types of leases that differ on the basis of the agreement between the landlord and tenant regarding responsibilities.
– Single net lease- The tenant pays the property tax.
– Double net lease- Tenant pays property tax and insurance.
– Triple net lease- Tenant pays property tax, insurance, and maintenance.
– Gross lease- Tenant pays rent and the landlord pays the tax, maintenance, and insurance.
Categories of commercial properties
There are mainly three different classes of commercial properties:
Class A- This is the top category that is relatively new, well-maintained, strategically located and has a solid structure.
Class B- Buildings in this category are older. Investors generally look for these buildings to restore them and make them usable once again. They make a greater profit because the investment is not so high and after renovation, it can become as good as new.
Class C- The location of these buildings is not very attractive and the structure itself is more than 20 years old. It requires a lot of maintenance.
Investing in Connecticut Commercial Real Estate
Commercial investments are high-risk because of the uncertainty of getting returns in terms of regular rent. It is always a good idea to find a location where the demand is high and the vacancy is low. Such an investment guarantees continuous occupation of property and inflow of rent.
The property should be located in an area where the local economy is strong and there are chances of development. This ensures greater appreciation in the value of the property with the passage of time.
Commercial real estate agents should be consulted to get a clear idea as to the current property prices, market scenario, legal procedures, the correct time to buy a commercial property, and the best properties available for sale.
It has been predicted that this year the retail market will continue its momentum in terms of e-commerce sales and office spaces will become more flexible and smart.