Even with the overwhelming number of new investment options available today, commercial real estate remains a perennial favorite for many of the world’s highest net-worth individuals. Precisely why this is varies from investor to investor; however at their core income producing properties—whether multi-family apartments or retail spaces—offer investors several key advantages over other asset classes.

Stemming from a belief in the importance of property ownership and reinforced by substantial IRS tax incentives, it is perhaps not surprising many of the nation’s wealthiest individuals have considerable real estate holdings.  Commercial property ownership is unique because it combines several distinct benefits into one asset or portfolio. These include but are not necessarily limited to: attractive leverage and financing, appreciation, tax-based incentives, diversification, supply & demand, and consistent returns (cash-flow).  For those able to access the market these benefits can produce significant ongoing returns. Whether you are starting out or weighing your various investment options, the following are some general concepts and factors to consider when acquiring, financing, or exchanging commercial real estate holdings.