Benefits To Investing in Commercial Real Estate in the Washington DC Area

Washington DC is one of the prime locations for investing in commercial real estate.

As the capital of the U.S., DC is a hub of political, cultural, and economic activity, making it an attractive location for investors.

Whether you are a seasoned pro or a newbie in commercial real estate investing, you can never go wrong with working with The Mortgage Option in the DC area if you need financing.

Let’s dive deeper into the benefits of investing in commercial property in Washington, DC.

Why should I invest in commercial real estate in Washington, DC?

Investing in commercial properties in Washington, DC, can be profitable for various reasons. We share some of the top reasons why you should consider buying.

  1. Commercial properties often increase in market value.

Generally, commercial real estate increases in value, which means once you buy the property, you can let your equity grow and sell it for a profit in the future.

  1. Lease income is higher compared to residential properties.

Commercial real estate is your best choice over residential properties to earn more per square foot. Commercial leases also have longer leases lasting 3 to 10 years, compared to residential real estate offering short-term leases.

A good strategy would be to look for government tenants since they won’t go anywhere and usually renew their leases. Closing a government tenant means you can enjoy a stable income stream which boosts your equity over time.

Aside from government tenants, large companies with solid credit ratings will likely inquire about your commercial property.

If you want to finance your commercial real estate investment, apply for a commercial loan in Washington, DC.

  1. You have more control compared to residential property investments.

When you own commercial real estate in DC, you can choose the type of tenants and lease terms.

With commercial real estate, your tenant pays for maintenance, insurance, utilities, and real estate taxes. This setup means you can earn more than residential properties because you spend for the mentioned costs as a residential property investor.

It is also common for commercial tenants to spend on improvements which signifies that they will most likely stay for a long time.

  1. The government supports you.

Being the nation’s capital, the federal government plays a huge role in the DC economy. You can take advantage of government incentives and programs.

For example, the 1031 tax-free exchange allows investors to sell their commercial property and buy another property without paying capital gains taxes.

The fed also offers tax incentives for specific types of commercial real estate investments. A good example is the Opportunity Zones program which provides tax breaks for investors in specific low-income areas.

DC is also famous for its historical architecture, which has been well preserved over time. With strict zoning laws, new construction is limited in certain areas, making existing commercial properties highly coveted by prospective tenants.

If you are ready to invest, work with a commercial mortgage broker in Washington, DC, for a smooth and stress-free investing experience from start to finish.

  1. DC has a solid rental market.

The rental market in DC is one of the strongest in America. Demand for office, retail, and industrial space is always high, and rental rates are one of the highest in the nation.

This is good news for investors since you can expect higher returns through your commercial property. 

DC is where many large companies, start-ups, and tech companies converge, all needing office and industrial space.

If you are curious about commercial mortgage rates vs. residential, you can ask our loan experts for the latest rates for comparison. 

Are you ready to invest in commercial real estate in Washington, DC?

Investing in commercial real estate in Washington, DC, is wise and profitable if you want to diversify your portfolio and generate steady income.

Given one of the strongest rental markets in the country, government support, and high rental rates, you can never go wrong with investing in DC.

At The Mortgage Option, we offer a variety of loan products with the best rates that can help you secure financing for your commercial real estate property.

Investing in commercial real estate requires due diligence and careful planning. Our team of loan experts can help you with the right financing and investment strategy to ensure a profitable and rewarding venture into commercial real estate investing.

Reach out by calling or messaging us today! Our commercial loan experts would be glad to take your call.


* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.

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