Should I evaluate commercial real estate as an investment or as a business?
Category:
Buying & Investing
In many respects, commercial real estate combines elements of both. While the property itself is an investment, its performance depends upon many of the same disciplines that drive successful businesses, including revenue growth, expense management, customer (tenant) retention, capital planning, operational efficiency, and long-term strategy.
Owners who apply sound business principles to commercial real estate often make more disciplined investment decisions.
Successful investing requires both financial analysis and operational thinking.