Investing in commercial Real Estate

Commercial real estate in Puerto Rico presents a valuable opportunity for investors seeking long-term income, asset appreciation, and portfolio diversification. From retail and office spaces to warehouses and mixed-use properties, the island offers diverse options across a growing range of sectors.

Why Invest in Commercial Real Estate?

1. Steady Cash Flow

Unlike residential rentals, commercial properties often come with longer lease terms, leading to more stable and predictable income.

2. Higher Income Potential

Per square foot, commercial spaces tend to yield more income than residential units, especially in high-traffic zones or underserved areas.

3. Triple Net Leases

Many commercial leases pass on expenses like property taxes, insurance, and maintenance to the tenant—reducing the landlord’s responsibilities.

4. Professional Tenants

Commercial tenants (e.g., retail stores, restaurants, offices) often maintain properties better and invest in improvements to attract clients.

Types of Commercial Property in Puerto Rico

• Retail: Strip malls, shops, restaurants
• Office Space: Medical, corporate, co-working
• Industrial: Warehouses, logistics, light manufacturing
• Mixed-Use: Buildings with both commercial and residential components
• Hospitality: Guesthouses, small hotels, short-term lodging

Best Areas to Consider

• Metro San Juan: Condado, Santurce, Hato Rey
• Tourism hubs: Rincón, Fajardo, Luquillo
• Developing areas: Patillas, Aguadilla, Ponce
• Highway-accessible towns: Bayamón, Caguas, Humacao

Key Considerations Before Investing

• Zoning: Confirm allowed commercial use through OGPe
• Location: Look for foot traffic, visibility, and demand
• Condition: Renovation costs can impact ROI
• Permits & Compliance: Local regulations must be followed strictly
• Anchor Tenants: A well-known tenant can add value and stability

Common Mistakes to Avoid

• Underestimating operating expenses
• Skipping due diligence on permits and compliance
• Overestimating demand without market research
• Ignoring accessibility and parking needs

Final Thoughts

Investing in commercial real estate in Puerto Rico can offer robust returns, especially in areas with growing economic activity or tourism. With the right team and guidance, you can tap into a segment that’s both rewarding and resilient.

At She Builds Realty, we connect investors with high-potential commercial opportunities and provide local expertise every step of the way.

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