The line between commercial and retail space is getting fade day by day. The mixed use properties are growing in popularity every single day. The retail style businesses along with the changing business models are reshaping the traditional commercial retail shops. As a result of this, even the most experienced retailers are scratching their head.

The commercial space refers to those areas or buildings that are used for the purpose of businesses. These are the spaces where the companies conduct their business operations, provide services and sell their products. The commercial spaces include restaurants, stores, offices and warehouses. You will find the commercial office spaces mostly in the busy areas of the towns or the cities that are built to suit the specific business requirements of the customers.

The commercial society shops on the other hand is also a type of commercial property where the businesses sell services or products to the customers directly. These spaces are designed in a way so as to attract the shoppers and showcase the merchandise. Some of these include the boutiques, shopping malls etc. The traditional retail space includes the display windows, storage rooms and the checkout areas. You will come across them in the traffic areas where there is a high footfall for the easy access of the customers.

Benefits of Investing in the Retail Shops

1. The Rentals of the Retail Spaces are quite high.

2. It is easy to find tenants for shops. Even the small micro markets as well as the developing areas have businesses and vendors that have retail spaces.

3. If you are owning a shop that also means that you can establish a business. If you invest in a shop early, that will also help you to prepare for a second source of income.

4. The retail shops do not require a lot of maintenance as the owner of the shop primarily takes care of the property. 

5. There are much lesser chances of encroachment if these are bought from reputed developers like Grrow Property Management. Moreover, based on the location and size the entry cost of investing in the shop is also much lower in comparison to office spaces.

6. The shop in a prime location is a source of high value and it will provide you with a sustained income. Infact the offline stores in India are in high demand.

7. Reselling the property is also much easier. The demand for shops is high and the supply is comparatively less.

Benefits of Investing in the Commercial Office Spaces

The benefits of investing in the commercial spaces are as follows:

1. The commercial properties provide you with a very high rental yield. This is higher in comparison to other properties thereby resulting in better return on investment.

2. The lease term with the commercial tenants is longer. Therefore, the income stream for these kind of properties is more consistent and predictable.

3. The commercial properties are located in good areas and this helps in value appreciation over time due to the economic growth and the demand in the market.

4. If you are investing in the commercial real estate, that helps you diversify your investment portfolio across the different types of properties that include the retail spaces, office buildings as well as the industrial warehouses.

5. The commercial tenants are mostly well established businesses that have strong credit history. 

6. There might also be tax benefits associated with owning the property depending on the regulations and the location.

7. Commercial rents most of the times also adjust with inflammation. This provides a protection against the rising costs.

8. These properties are mostly located in the prime locations that have high foot traffic. This enhances the appeal of the tenants and visibility.

Conclusion

Whether you should invest in the commercial office spaces or retail shops needs a careful consideration. This requires a careful consideration between the increased risk involved in retail with higher chances of return Verses the long term stability of the tenants in the commercial office spaces. It is important as an investor to assess the risk tolerance, long term goals and the market knowledge to make the right choice.