Is it advisable to invest in commercial premises?

Category: General

Why is investing in commercial premises worth it today?

Investing in commercial premises continues to be one of the smartest decisions for those seeking to diversify their real estate assets with an asset that combines profitability, stability and a high capacity for revaluation. Despite digital trends and the rise of e-commerce, physical stores have demonstrated their resilience, especially in strategic locations and with well-positioned businesses.

At laHome Inmobiliaria, based in La Cañada (Paterna, Valencia), we have accompanied both national and international investors for more than a decade in the search and acquisition of commercial premises with high potential. We have seen it first-hand: a well-located premises, with a solvent tenant and a good management strategy, becomes a source of stable and secure passive income.

Key advantages of premises compared to other assets

Investing in commercial premises offers unique benefits compared to other types of properties such as homes or garages. These are some of the reasons why so many laHome clients continue to bet on this type of asset:

1. Profitability above the average of the residential sector. While a home usually generates gross returns between 3% and 5%, many of our clients obtain returns of 6% to 10% annually with well-located premises.

2. Longer and more stable contracts. Commercial leases typically extend for longer periods (5, 10, or even 15 years), ensuring consistent income without having to change tenants every so often.

3. Lower maintenance costs. Unlike housing, where the owner usually covers almost all expenses, in premises it is common for the tenant to be responsible for maintenance, supplies and even part of the IBI and community expenses.

4. Revaluation and liquidity. A commercial property in a developing area can skyrocket in value in a few years. We have seen it in areas such as Campolivar or certain streets of Godella, where premises purchased in 2016 have appreciated more than 40%.

5. Defense against inflation. Commercial contracts usually have CPI update clauses, which protects the owner against loss of purchasing power.

The main risks that you should take into account

Although commercial premises have great advantages, they are not without risks. At laHome Inmobiliaria we not only advise on purchasing, but we help minimize the most common mistakes that can jeopardize a promising investment.

Wrong location. A nice but poorly located place can mean months or years without a tenant. The choice of area is critical: we always analyze pedestrian traffic, the type of nearby businesses and the socioeconomic profile of the environment before recommending an operation.

Extended vacancy. If the premises remain empty for a long time, the fixed costs (IBI, community, insurance) continue to run. For this reason, we design specific marketing strategies to minimize periods without tenants.

Unbalanced contract negotiations. Some poorly drafted contracts can harm the owner in issues such as extensions, rent updates or exit clauses. We work with lawyers specialized in urban leasing to always guarantee a solid legal framework.

High initial costs. Entry into this type of investment may require a high initial outlay. However, we design mixed formulas with bank financing or co-investment so that our clients can access premium premises without compromising their liquidity.

Real estate crowdfunding: a less expensive alternative

Although at laHome Inmobiliaria we work mostly with investors who acquire premises directly, we are aware that many profiles seek to diversify without having to allocate 100,000 euros or more. Here comes real estate crowdfunding, which allows investing in portions of commercial premises from small amounts.

Platforms such as Wecity or Urbanitae allow you to participate in projects for commercial premises already rented or in the renovation phase. This type of investment reduces individual risk, offers interesting returns (although generally somewhat lower) and allows access to markets such as Madrid or Barcelona without having to buy directly.

Smart financing: mortgages and leveraged investing

One of the great advantages of the real estate market is the possibility of leveraging the investment through bank financing. In commercial premises, banks usually require greater guarantees than in housing, but if a good feasibility study is presented, it is possible to obtain very competitive conditions.

In our experience at laHome Inmobiliaria, we have managed operations with mortgages of 70% of the appraisal value, which has allowed our clients to make their initial capital profitable much faster. In addition, we collaborate with mortgage brokers to obtain the best conditions according to the investor's profile.

It is important to take into account financial costs, mandatory insurance and bank requirements for tenants. We help throughout the entire process, from the search for financing to the notarial signature.

Location: how to choose the right area for the premises

Location is, by far, the most decisive factor when investing in a commercial property. At laHome we have a maxim: we do not sell square meters, we sell business opportunities.

Some areas that we have identified as having great potential in the Valencian Community include:

• La Eliana and San Antonio de Benagéber: in residential boom, with high demand for local commerce.
• Paterna center: with a mix of established housing and new developments.
• Godella and Rocafort: premium areas with a high purchasing power customer profile, ideal for clinics, offices or boutiques.

In addition, we constantly analyze opportunity zones in other provinces for our international clients. The key is to study the environment, demographic evolution and the type of businesses that thrive in the area. Our database and network of contacts allow us to anticipate trends.

Real cases and practical experiences

Since we were founded in 2014 as laHome Inmobiliaria, we have helped dozens of clients find commercial premises that have changed their lives. We are a family business that is part of the Piscilimp Group, based in the green lung of Valencia.

We speak five languages and work with clients from Canada, USA, France, Germany, UK, China and more. Many of them contact us to acquire premises in strategic areas with the peace of mind of knowing that here they will have a complete team at their service.

Our comprehensive real estate model not only seeks to close operations, but also to build relationships. We dedicate time, transparency and total support to each client from the first analysis to the post-sale.

And most importantly: for each closed operation, we make a donation to the Spanish Association Against Cancer. Because we believe that profitability and social commitment can go hand in hand.

Recommendations from Home Real Estate

In short, investing in commercial premises continues to be a highly profitable and strategic option if done with head, analysis and professional advice. It is not an investment to improvise. But with the right allies, it becomes a robust, scalable and secure source of passive income.

At laHome Real Estate we offer you:

• A personalized profitability analysis.
• Legal and financial support at every step.
• Access to premises in premium areas.
• Human, close and transparent treatment.

If you are thinking about diversifying your assets, protecting your savings against inflation and building a stable income for the future, commercial premises can be your best decision. And at laHome, we are ready to help you. Contact us!