Kamloops commercial real estate is thought by many as one of the best investments you can make. Unlike residential properties commercial real estate serves really only one purpose, makes money.
In commercial real estate prices are usually determined by CAP rate. The cap rate is a measure of the income of the property after fixed costs like taxes, management, and common yearly maintenance are taken out. The lower the CAP rate usually means the more likely it is that the investment is risk free. For example, for mobile home parks where there are many income streams (renters) and relatively low risk of non payment (at least in theory) and steady income through out the year, it is not uncommon for properties like this to fetch 6% cap rate. Where as for self storage business the cap rate is usually a little higher do to the more risk involved. For example in self storage businesses there usually more employees, more client turnover, and more seasonal type income, so the cap rate for this type of business is usually around 8%-10%. For business like u-haul it classified as a retail property and there for it usually at a 12% rate.
Going forward, what is great about owning commercial real estate is lower mortgage rates get the better the CAP rate you could potentially command.
If you are looking for a Kamlooops commercial real estate for sale.