How investing in commercial property can help future-proof your small to medium-sized enterprise

As our economy recovers from the impact of the recent pandemic and the unpredictable economic changes in the country, finding a stable cash flow has become a significant aspect for many South African business owners. Investments in property have proven to be a beneficial source of revenue, amongst many other advantages. 

It is important to note that small to medium-sized enterprise owners can benefit from the many advantages of owning commercial property. This is simply due to owning an asset rather than leasing a space and incurring expenses related to rent and maintenance. Examples of commercial properties include:

• Retail buildings
• Industrial buildings
• Office buildings
• Warehouses

Reasons why investing in commercial property is beneficial

We have outlined three key reasons why investing in commercial property can help business owners secure a steady cash flow for their small to medium-sized enterprises.

1. The Current South African Economy 

The South African economy, including the commercial property sector, took significant strain under the 2020 pandemic. However, recovery and growth in the property sector is already on a positive incline. Businesses have taken the steps to operate from remote locations, but many have also adapted and opted for smaller operational spaces.

Small to medium-sized enterprises have a renewed opportunity to find a brick-and-mortar presence in the property sector, by not only owning commercial property, but investing in the space for leasing purposes. 

2. Financial Advantage

When investing in commercial property, there is the added benefit of financial advantage in terms of having a tenant leasing the property for several years, as opposed to a residential property which is generally leased for 6-12 months. This allows for better financial security, stability with a monthly rental income, and improved longevity for the small to medium-sized enterprise.

3. Maintenance

Owning a commercial property includes routine maintenance and these costs are typically covered by the landlord as per the commercial lease agreement. However, the maintenance costs are often not as financially straining due to the low level of activity on the property, compared to residential properties. For this reason, investing in a commercial property has the potential to keep routine maintenance and repair costs within reasonable parameters.

To reduce the stress and strain of property maintenance for small to medium-sized enterprises, hiring a property manager to manage the property on your behalf is a way to stay on top of these responsibilities.

Interested in hiring a commercial property manager? Call us!

Let our experienced team manage your commercial property on your behalf. We specialise in seamless, stress-free commercial property management and will ensure that your investments are managed efficiently. Feel free to contact us today.