Investing in commercial real estate can be a great way to generate passive income in the St Paul-Minneapolis area and beyond. In these uncertain economic times, every investor in the Twin Cities is looking to maximize their ROI – and that starts with acting on the right opportunities.
You’ll often hear people talking about buying office properties or apartment buildings – but those aren’t the only ways to generate substantial passive income with commercial real estate.
There are some key commercial real estate investment strategies that can help investors identify the right investments and maximize their net operating income (NOI). By understanding the different types of commercial real estate investment opportunities that are out there, investors can create a portfolio that yields maximum returns.
Ready to find your path to passive property income? Here are some often-overlooked commercial real estate investment opportunities to consider.
(1) Laundromats
Coin-operated laundry facilities are easy to maintain, require little to no staff, and generate a steady income from customers. With careful planning and research, investors can find prime locations for these often underestimated facilities that will maximize their profits and provide a steady stream of income for years to come.
It’s estimated that coin-operated laundromats can yield up to 35% ROI for many investors. They can also operate without much hands-on work required, so owners can limit their staffing and labor costs.
One of the most popular avenues for commercial real estate investors is to purchase multi-family living spaces such as apartments. If you own a multi-family rental property, adding nearby coin-operated laundry facilities to your portfolio will help increase your NOI by providing additional income streams from tenants who will use the machines.
Additionally, owning laundromats can also help you attract more tenants as they provide an essential service that many tenants look for when searching for rental units.
(2) Parking Lots
In the bustling cities of St. Paul and Minneapolis, parking lots are incredibly valuable assets. With a growing population and increasing demand for space, parking lots can be a lucrative investment for individuals and businesses alike.
Not only do lots provide convenience to those looking to park their vehicles, but they also offer potential rental income from businesses that need a place to store their goods or vehicles.
Although it’s not a high-profile investment, parking lots can be beneficial for St Paul-Minneapolis commercial real estate owners who want to attract more tenants or customers. Providing convenient and secure parking options will help draw more people to your property, which can result in higher rents received.
Did you know that 30% of traffic congestion is due to drivers looking for parking space? There is often a higher demand for convenient parking than there is supply, so investing in a Twin Cities area parking lot can be a savvy investment in 2023.
(3) Self-Storage
As the population of the United States continues to increase, so does the need for self-storage facilities. After all, Americans love hanging onto their stuff. This is especially true in the St. Paul-Minneapolis region, where there is a high demand for storage solutions.
Investing in commercial property is a great way to capitalize on this growing trend and provide people with an affordable, convenient way to store belongings. With the right investments, businesses can capitalize on self-storage properties and benefit from increased profits in the long run.
Investing in self-storage properties can be a great way to make money, as they are relatively easy to run and financially savvy. These facilities offer investors a chance to diversify their portfolios by investing in commercial real estate without having to worry about the complexities of managing any tenants.
Self-storage facilities also provide investors with an opportunity to generate steady income from rental payments while maintaining the potential for appreciation over time. Self-storage properties are typically low-cost and require minimal maintenance, making them an attractive option for those looking for a long-term passive investment strategy.
(4) Data Centers
Investing in data centers in the Twin Cities is a great way to capitalize on the growth of the industry in the area. Over the past few years, data centers have seen a huge increase in demand, resulting in an explosion of construction and investment opportunities.
With the right commercial real estate investment strategies, investors can take advantage of this still under-the-radar trend and reap significant rewards.
Data centers provide an essential service for businesses and organizations that require large amounts of storage and computing power. They also offer investors an opportunity to diversify their portfolios by investing in commercial real estate with a high growth potential.
The data center explosion has been fueled by the introduction of new technologies such as cloud computing, virtualization, and big data analytics. These technologies have enabled businesses to store and process large amounts of data quickly, securely, and cost-effectively. As a result, businesses are increasingly on the lookout for commercial property for their data centers.
By understanding the trends driving this sector and researching different investment strategies, investors can make informed decisions about how to best capitalize on this unique opportunity.
(5) Senior Living Facilities
Within the next 15 years, it’s projected that 1 in 5 adults living in Minnesota will be over the age of 65. With the aging population, the number of seniors looking for accommodations is expected to increase drastically in the coming decades.
This presents an opportunity for investors to capitalize on this demographic shift by investing in commercial property. Investing in commercial real estate can be an extremely lucrative venture if done at the correct time and location.
Investing in senior living properties can be a solid investment for commercial real estate investors. However, it can be more difficult to fill these properties at maximum capacity, as there is often a limited pool of potential tenants.
By narrowing into a specific type of residence, such as assisted living, independent living, or skilled nursing facilities, investors can make their property even more profitable and attractive to potential tenants.
Interested in Investing? Contact Gonyea Commercial.
As discussed above, there are some key commercial real estate investment strategies that can help investors identify the right investments and maximize their NOI.
One effective strategy is to identify valuable investment opportunities that other commercial property investors often overlook. This will give you a step ahead in placing an offer on some great commercial properties.
Gonyea Commercial Property is a leading provider of commercial real estate services, offering investors access to all kinds of overlooked opportunities in the market. With our expertise and resources, we help investors find the perfect commercial property investment that fits their needs.
Whether it’s a laundromat, self-storage space, or industrial property, we have the experience and knowledge to make sure you’re taking advantage of the best investment opportunities out there.
Call today to learn how Gonyea will help you find your next commercial property investment!
