Benefits of Preleased Commercial Properties

A preleased commercial property is one which is leased to a tenant and then sold in the market. After the sale, the lease is transferred to the new owner who then gets a legal right to receive the lease rents subsequently.

A preleased industrial property offers a host of benefits you can enjoy.

Zero Waiting Period

Since a preleased commercial property is already given on lease and fetching a regular rental income, there is no waiting period for the buyer to earn Return on Investment (ROI). The moment the lease deed is transferred, the ROI begins the very next day.

Capital Appreciation

Usually, the value of preleased properties appreciates over a period of time. And, if it is located in a premium location or has good infrastructure, design and amenities, then the capital appreciation can go even higher. The buyer can enjoy a good capital appreciation on preleased properties, provided they keep a horizon of at least 10-15 years.

Regular and Assured Income

When the investor gets the lease transfer, he also gets the tenants and rental income by default. So, there is assured and fixed rental income every month. This income can be used for various business purposes such as working capital or reinvesting in a financial instrument, thereby maximizing the returns further.

Easy Liquidity

Most real estate properties are low on liquidity as it can take months to years to sell them. However, preleased commercial properties come with the benefit of regular rental income, which makes them a more liquid investment in nature.

Rental Discounting

The lessor can avail a term loan at a low-interest rate against the rental receipts of the preleased commercial property. Rental discounting enables the lessor to raise capital on the basis of the discounted value of the rentals as well as the underlying value of the property.

If you are looking for industrial project management or industrial consultancy regarding preleased commercial properties, get in touch with us.