Over the past few decades, Maarten De Jeu has gained a significant amount of experience across a wide range of niches. As a strategic advisor, he has worked with a variety of firms during his career, with many of these being listed on the Fortune 100. As a result of this expertise, he has been able to highlight several financial areas where companies can be successful, with one of the more prominent of these being commercial real estate investing.
The primary reason for this is that there is quite a considerable number of benefits to commercial real estate property, which helps to differentiate it from other niches. As a result, De Jeu notes that it can often be one of the more financially attractive options for many entrepreneurs.
Protection Against Inflation
One of the most notable benefits that De Jeu highlights is that commercial real estate property can offer a significant amount of protection against inflation. While appreciation can often vary over time, he claims that this typically outpaces the rising costs of goods and services.
Alongside this, Maarten De Jeu highlights that there can be a significant amount of volatility with the value of stocks and bonds. As a result, entrepreneurs often cannot predict their long-term value and how this will measure up to inflation. With a commercial real estate property, however, the majority of investors should be able to protect themselves against much of this.
The strategic advisor also notes that many states have regulations that allow for rent escalation over time, which can further enhance this protection, as well as feedback into it. Another core benefit of this rent increase is that investors should see increasing returns from the property, which should mean that they’re getting much more value for money.
Maarten De Jeu also highlights that, since commercial real estate property is a hard asset, it could provide a variety of ways to maximize the profit that’s made from it. These can be relatively unique when compared to stocks and bonds, which often cannot compete with some of its core advantages.
For example, De Jeu notes that hard assets can be insured, while stocks and bonds cannot. As such, should a building get damaged, then owners will be able to have it repaired without having the costs eat into their investment.
There’s also the option of improving and upgrading a commercial real estate property, which should subsequently mean that investors will be able to command a much higher rent than they initially had. Though this will require additional funds to perform, the business advisor notes that these can reap dividends over the long-term. Learn more: https://www.chicagobusiness.com/article/20150917/BLOGS03/150919840/bill-clinton-schmoozes-with-chicago-ceos-to-fundraise-for-hillary
One of the final core benefits that being a hard asset has is that commercial real estate property can be sold, which should help to return the majority, if not all, of an initial investment. While stocks and bonds can boast this too, Maarten De Jeu highlights that the money that was made through rent can enhance this value, and often mean that investors will make a large profit with the sale.