The Covid-19 pandemic has changed the landscape of the retail industry. The demand for grocery store properties has soared and transformed this sector into becoming a highly in-demand real estate investment category. Even during this challenging period, grocery stores have done exceptionally well. That is why if you are looking for a commercial real estate property that is worth the investment, Wegmans real estate is a smart choice.
What Makes Wegmans Real Estate a Good Investment
There’s no denying that people need food and other essential items found in grocery stores. This is the reason why Wegmans grocery store chain is a good investment opportunity.
As a growing asset and one of the largest privately-held corporations in the U.S., Wegmans has a sales revenue of $7.9 billion per year. You can trace its roots in Rochester NY back in 1916 and it has been growing steadily over the years.
Wegmans has around 89 locations in most of the eastern states between New York, Pennsylvania, New Jersey, Virginia, Maryland and Massachusetts. With over forty-six thousand happy workers, it is no wonder why they have made it to Fortune’s Best Companies to Work For for the past 18 years.
Buying Wegmans Real Estate: Important Factors To Consider
Although buying Wegmans real estate for sale is generally a good investment decision, taking proper measures is still crucial. This ensures that you are purchasing the best asset to grow your investment.
Below are important factors to consider:
Evaluate the location of the investment property
The property should be in a high-traffic location to ensure better profits and tenant sustainability. The property should have good access to the road and be highly visible to passersby. It is a bonus if the property has its own parking space.
Check the Valuation of the Property
Property valuation is crucial when it comes to financing during the purchase, insurance, investment analysis, taxation and listing price. All of which depend on real estate valuation. Take note of recent comparable sales of properties that have similar characteristics. The cost of land and construction should also be analysed along with the income approach based on expected cash flows.
Consider their Lease term
Take note that you are purchasing a commercial real estate property because you want to generate income from its rent. Engaging in a short-lease term means enjoying a short stream of income as well. It would be wise to choose Wegmans real estate property that still has a full lease term so you can enjoy a stable income stream.
Look at the overall real estate market
Just like any investment type, buying low and selling high is the goal of every investor. The real estate market constantly fluctuates, that is why being aware of the latest trends is important. Do your due diligence and conduct thorough research on the investment property. Review their tax returns, financials, profit and loss statements from the previous owner, documents and other necessary details.
Consider hiring an NNN advisor
Once you have found the potential Wegmans triple net lease property, seek the help of experts to help you out. An NNN advisor can help you decide if the commercial property will best suit your requirements. With their extensive knowledge about NNN investment, an advisor will help you find the most ideal property. They will help you proceed with caution and assist you in achieving your investment goals.
What Are the Advantages of Commercial Real Estate?
Thanks to online marketplaces, you can now invest in real estate and diversify your investment portfolio. Below are the top advantages of commercial real estate investment such as Wegmans real estate.
- Enjoy faster profit. Getting your ROI faster is now possible, thanks to the influx of rental income. This promise of profit is one of the reasons why people want to invest in commercial real estate. Because they are businesses in nature, raising the cost of rent is more convenient compared to a residential structure. How much more if you add amenities and last-moment renovations? These will further boost your ROI without much of a sweat.
- Take advantage of tax incentives. It can be challenging and costly to maintain a commercial property. That is why the Internal Revenue Service offers tax incentives to owners especially for money spent on upkeep and maintenance.
- Realistic responsibilities. You won’t have to deal with emergency calls in the wee hours of the morning. Since you will be investing in commercial real estate, you have fixed hours of operations. To further avoid such problems, you can upgrade your property’s insurance and security features. You can sleep soundly at night without worries.
- It has less risk. Its low volatility is one reason why investors love commercial real estate. It’s possible to secure a lease contract from clients for the long term. Sometimes, the lease contract will last for 3-5 years or even longer. This smart move is one way of ensuring your profit for the next half-decade or so.
- Professional and conscientious clients. Since you will be dealing with other business owners, expect more professionalism. Commercial real estate investments like Wegmans real estate, for instance, are establishments that are conscious about maintaining their image. They will surely do their best to keep the premises clean and well-kept as much as they can.
- Less competition in the market. Unlike residential property investment that is plagued with competition, commercial real estate investments have lesser competitors, thanks to their bigger structures.
- Its value appreciates over time. Unlike residential real estate, the value of commercial real estate appreciates over time. With regular upgrades for new amenities and added features, lots of investors will surely take interest and fight over your property if you decide to sell.
Building wealth and achieving financial stability are your goals for investing in Wegmans real estate department. Their reputation of providing value not just to their clients but also to their workers is a strong indicator of success.
With the above-mentioned pointers, you can now take the first steps to achieve your investment goals and financial freedom.
If you want to know more about investing in NNN real estate, don’t hesitate to visit our site!