Tag Archives: Tips and Tricks

Building Wealth in Commercial Real Estate Investment

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Exploring the Rewards of Commercial Real Estate Investment

by Brad Broyles

Commercial real estate investing can be very rewarding, both financially and personally. For many business owners and entrepreneurs, the objective of investing in commercial real estate is for wealth and security, which can be grown into a portfolio and passed down to future generations. Commercial real estate also offers an abundance of tax benefits for investors and increased diversity on their investments.

Office/ Retail Investment Property with Parking Lot

Commercial real estate investment offers the following advantages:

Higher Potential Income: The biggest reward of investing in commercial real estate is higher potential income. Typically, commercial properties have a better return on investment, which could average from five to twelve percent, while single-family home properties struggle between one and four percent annually.

Longer Leases: The hallmark of commercial real estate is the attractive length of leasing contracts.  Residential properties are typically set for one year, while commercial leasing contracts are set for three up to twenty years.  These leases offer impressive returns and considerable monthly cash flow to investors.

Investment Property: 2 Office Buildings, Warehouse and Fenced Contractors Yard

Cash Flow: Commercial investing has one very clear advantage: a relatively consistent stream of income. Remember, the tenants are business professionals and need the property for company operations. Therefore, rental payments are steady and thus deemed a reliable monthly income.  Some commercial properties consist of more that 1 unit, resulting in multiple streams of income.

Tenants Pay Property Expenses: In most leases, tenants will also pay operating expenses on a commercial property. This is commonly known in the industry as triple net (NNN) lease. Triple net leases generally state that the lessee must pay the building’s real estate taxes, property insurance and maintenance costs, in addition to monthly rent.

Lower Vacancy Risk: Another perk, is that commercial real estate provides lower vacancy risk with leases spread over several units or properties. Typically, vacancy rates range between ten to fifteen percent and can be leased within two to four months.

Auto/ RV Sales and Repair Investment Property

Building significant wealth through commercial real estate investing requires planning, patience, and persistence. It may take time, but the right property investment  it will generate genuine wealth and security that can carry on for generations.

For more information on how COBE Real Estate can help you find your next investment visit COBE Real Estate , or for listing information visit our Property Search 

Brad Broyles

Senior Advisor

Brad Broyles is a real estate professional with over 11 years of experience in real estate investments, management, development, leasing and sales.

Since joining COBE Real Estate in March 2013, Brad has participated and closed over $50 million of commercial real estate transactions. Prior to joining COBE Real Estate, he spent 4 years as a Vice President of Commercial Banking which he was responsible for managing and selling a $30 million commercial portfolio. Brad also specialized in business start-ups, SBA lending, cash flow capital and special asset management. His unique business and real estate background allows him to be the best representative to any business owners who are wanting to expand or relocate their company.

Brad has a Masters of Real Estate Development from Arizona State University and a Bachelors degree in Accounting and Finance from the University of Phoenix. He is a member of the Arizona Small Business Association and is active with the Mesa Chamber of Commerce.

brad@coberealestate.com
(480) 610-2400
Cell: (480) 797-5266

2016 Highlights & Things to Watch in 2017

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Looking back on 2016 highlights and identifying some key areas of interest in 2017

2016 has been a great year for COBE Real Estate. We are thankful for those who contributed to a successful year, and hope for even better and brighter things from 2017. Here are some of our 2016 highlights and things that have us excited about 2017

2016 Highlights- Phoenix Warehouse District

Phoenix Warehouse District

The Warehouse District, located just south of downtown Phoenix,  was once an economic hub where produce from Arizona’s farms was warehoused. Thanks to recent renovations in the area, it seems the Warehouse District will once again become a thriving area of Phoenix and home to a number of creative companies.

WebPT and Galvanize are among the list of new tenants in the area.  The highly successful tech companies signed long term leases for a 122,000 SF building in December of 2015. COBE Real Estate broker TJ Zaharis, who represented the owner of the warehouse in the negotiations, sees the Grant Street Warehouse project as a catalyst for future investments and employment.  “This announcement is a big win for the Warehouse District that has been years in the making – all the collaboration between the public and private sectors should be celebrated for truly being pioneers in this revitalization” stated Zaharis.

WebPT and Galvanize are expected to bring more than 800 new employees to the area as they complete the renovations on the Grant Warehouse space. The increase to the number of people in the area will then bring a larger demand for restaurants, coffee houses, and housing.

More details on the closing of the 515 Grant Street Warehouse click here:  Phoenix Warehouse District

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Agritopia

Agritiopia is a unique and growing fixture in Gilbert.  A residential development with a working farm as its central feature, this agrihood is built on what used to be the Johnston family farm.  Agritopia was designed to preserve urban agriculture, to be neighborly and walkable, to breakdown barriers between people and to be multi-use.

With the developments of Generations at Agritopia, Barnone, Epicenter, and The Shops at Agritopia Village South, Gilbert is set to see growth in commercial, retail and housing. We are excited to have this iconic community in our area and anticipate that it will continue to be a destination for locals and tourists alike.

For details on leasing availability, click here:  The Shops at Agritopia Village South

2016 Highlight, Pinal Professional Village

Pinal Professional Village offers highest quality buildings in prime growth area

Pinal Professional Village

Located in a prime growth area, the Pinal Professional Village will host a wide variety of medical and professional tenants, including Rural Metro Fire, Pinal County Public Health Clinic, SimonMed Imaging and Arizona Public Safety Advocacy Center.

The San Tan Valley has a projected growth rate of 47% and is considered the Fastest Growing Region in Arizona. With the Master Planned Community of Encanterra Trilogy Homes and Golf Resort, and Banner Ironwood Medical adjacent to the property, this professional village is in the highest area for growth in residential and medical industries.

With these planned developments San Tan Valley and Queen Creek continue to establish themselves as prime growth areas of the East Valley in 2017.

For more information on the Pinal Professional Village visit:  Featured Property : Pinal Professional Village

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 Commercial Real Estate Investment

One of COBE Real Estate’s  2016 highlights was the representation of a number of investment deals across the Valley. COBE Real Estate brokers Steve Beck, Brad Broyles and TJ Zaharis represented commercial investment sales and acquisitions alike throughout 2016.

Some of COBE’s investment closings included:

Dobson Grove Plaza

Automotive Investment Property

Higley Retail Center

1355 S Higley Rd Suite 101

Investing in Commercial Real Estate can offer attractive returns, steady cash flow, and the benefits of possessing tangible assets. We are excited to see an increased interest in this market, and look forward to aiding our clients in future investment transactions.

For more information on available investment opportunities, Contact Us or visit our Property Search 

From all of us at COBE Real Estate, thank you for being a part of our 2016 highlights. We look forward to ringing in 2017 with you.