Traditional Culture Encyclopedia - Hotel franchise - Which is more valuable to buy a shop or an office building?

Which is more valuable to buy a shop or an office building?

In the short term, shops are more valuable; in the long term, office buildings are more valuable.

From the analysis of the return rate of investment shops and office buildings, shops are favored in commercial real estate. From an investor's point of view, they are most concerned about the return rate of investment. Compared with office buildings, the return rate of investment of shops is obviously higher than that of office buildings. The total price of investment shops is more expensive than that of office buildings, but the rent is also higher than that of office buildings, and once the surrounding supporting businesses are developed, the rent will rise faster than that of office buildings.

In addition, the value of shops is higher than that of office buildings, and the appreciation is faster. Shops are short-term investments, while office buildings are long-term investments. Comparatively speaking, investment shops are relatively less risky and have higher returns.

Investing in office buildings has its own advantages. The price of shops is generally several times that of office buildings. Obviously, high housing prices will definitely lead to high rents. Office buildings have great advantages over rental prices. In addition, the office building is multi-purpose, which can be used for both living and office. At present, this complex office building is very popular. Office buildings are long-term investments, with long redemption period and low return rate, but in the long run, the return rate of office buildings is greater than that of shops.