Commercial real estate: stability and profitability
Commercial real estate offers remarkable profitability compared to other forms of investment. Companies choose their location based on strategic considerations and analysis, whereby location, infrastructure and accessibility are decisive. This process differentiates commercial tenants from private tenants. While private individuals relocate for various reasons, some of them emotional, companies are primarily guided by economic aspects. The resulting long-term contracts mean regular income and calculable risks for investors. This predictability offers investors financial security. In addition, the stability of commercial tenancies helps to maintain or even increase the value of the property over time. A company that establishes itself in a location and is successful there lends prestige and value to the location, which in turn can influence the value of the property. This is just one of the important reasons why Rocksolid Estate AG focuses on investing in commercial real estate.
Diversified real estate offering also in special properties
A diversified investment portfolio is essential for investment success, whereby commercial and specialty properties are often underestimated, although they offer considerable advantages. They protect the investment portfolio from market fluctuations better than equities or bonds, as their performance is often less correlated with traditional financial markets. In addition, they provide access to different market cycles in the real estate sector.
Low administrative costs
The right choice of tenant structure can often reduce the administrative costs of commercial real estate compared to residential real estate. This is because commercial tenants are more likely to take care of repairs themselves and generally have clearly defined tenancies that are less emotional. Long-term tenancy agreements eliminate the need for re-letting processes and typical tenant problems. Companies also often keep their premises in good condition as they see them as their flagship. Clear regulations in commercial leases also minimize unexpected costs for the landlord. This leads to a solid income and more predictable returns.
Natural protection against inflation
Commercial real estate offers natural protection against inflation. Historically, they retain their value or increase in value even in times of high inflation. Unlike cash, which can lose value, rents are often adjusted for inflation, which in turn can affect the value of the property. Many rental agreements for commercial properties contain clauses for annual rent adjustments based on the consumer price index. In addition, rising construction costs in inflationary times increase the value of existing buildings. This inflation protection safeguards investors’ assets and offers sustainable returns.
The difference between commercial and special-purpose properties
While both commercial and specialty properties play an important role in the real estate investment sector, they differ from each other in several ways. Commercial properties, which include office buildings, hotel properties, retail properties or industrial properties, for example, generally offer predictable rental income based on long-term leases. They are often located in metropolitan areas and their performance is closely linked to the economic development of the region. Specialist properties, in particular photovoltaic systems or wind farms, on the other hand, are more focused on specific market niches, legal requirements, technological developments and suitable locations. Their value and profitability are closely linked to government subsidies and technological progress. While photovoltaic installations offer investors the opportunity to actively contribute to a more sustainable future, they can also be affected by fluctuating energy prices and technological innovations. However, both types of real estate offer attractive investment opportunities, which is why Rocksolid Estate AG invests in both.
In an increasingly sustainable world, special-purpose properties, particularly photovoltaic systems and wind farms, are gaining in importance. They are the focus of investors and governments due to the increasing demand for green energy and the global goal of minimizing CO2 emissions. Photovoltaic systems that convert solar energy are the key to the energy transition. Their efficiency increases with technological progress and falling costs. Rocksolid Estate AG sees the enormous potential of photovoltaic systems and wind power plants and plans to invest more in these areas. Investments in these plants combine ethical action with economic benefit and represent a future-oriented investment strategy.
In summary, it can be said that investments in both commercial real estate and special-purpose properties offer considerable advantages. While commercial properties provide stability due to their location and long-term contracts, special-purpose properties, such as photovoltaic systems or wind farms, offer the opportunity to participate in promising technologies and market developments. Fortunately, investors do not have to choose between these two attractive options.
With the ROC Token, it is possible not only to focus on one asset class, but to benefit from the advantages and returns of various investments. By investing in the ROC Token, investors indirectly invest in all commercial and special real estate acquired by Rocksolid Estate AG. The value of the token develops in line with the value of these properties. This means that you can benefit from the performance of these properties without having to deal with their management or letting. The ROC token is a modern way to invest in real estate by combining technology with traditional investment strategies. It is an STO token, i.e. a regulated security token. This means that, unlike many cryptocurrencies, this token is backed by real assets, in this case real estate. It is, so to speak, a digitization of real estate values.
After an uncomplicated registration and verification process, you can invest in the ROC token directly via our MiFID II regulated broker Equito in the current private sale starting at EUR 100,000.