This number can vary depending on a variety of factors, such as the area the property is located in, current economic conditions, the credit strength of the tenant, and numerous other external factors.
Commercial properties generally have a higher income potential when compared to residential real estate. The typical annual return of a commercial property is usually somewhere between 6-12% of the initial purchase price. This number can vary depending on a variety of factors, such as the area the property is located in, current economic conditions, the credit strength of the tenant, and numerous other external factors. This can be compared to a typical rate of return of 1-4% for residential investments annually.