Commercial real estate is everywhere – shopping centers, office buildings, industrial properties, hotels, apartment buildings, land and more. The term Commercial Investment Real Estate is used to describe real property that generates a profit whether it is by rental income or appreciation. Simply stated, the operation of a property may produce income while the increase in the property’s value over time results in appreciation.
Opportunity zone legislation, both federal and local, have made Puerto Rico a magnet for commercial investment real estate. The Law for Development of Opportunity Zones in Puerto Rico, signed on May 21, provides tax benefits for local investors as well as additional benefits for federal tax paying investors. The goal is to encourage long term investment in economically distressed areas that will promote development and create jobs. Those who invest a recognized capital gain in a Qualified Opportunity Fund and elect to defer the tax on that gain do not have to live in Puerto Rico in order to enjoy the federal tax benefits.
Although investment opportunities abound, the return on investment and the risk involved will vary greatly from property to property. Whether you are a proprietor looking to lease or sell, or an investor seeking property, a proper financial analysis and knowledge of the market are essential in order to have a positive outcome.
The CCIM Institute is commercial real estate’s most influential professional organization, with members closing $200 billion annually in commercial real estate deals. The CCIM designation means proven expertise in financial, market and investment analysis and negotiation.
CCIM designee members are leading experts in commercial real estate investment. They are brokers, appraisers, property managers, asset managers, lawyers, accountants and bankers. Annually, CCIMs average 42% more transactions than a typical broker specialist. CCIM designees are able to help their clients:
• Minimize risk
• Enhance credibility
• Make informed decisions
• Close more deals
Find a CCIM by specialty and location at www.ccim.com. Puerto Rico has twenty active CCIM designee members. Of these, fourteen are members of the Puerto Rico CCIM Chapter (www.ccimconnect.com/ccimpr).