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Government Leased Buildings
The real estate investment world has begun to recognize that the incorporation of government-leased real estate into a portfolio of income-producing property can improve its stability and increase its credit worthiness. High quality commercial real estate, especially government-leased property, has traditionally maintained or increased its value during changes in the overall business climate despite fluctuations in the value of the dollar. As yields from paper securities and other financial assets fall, yields from contractually fixed rental income streams become increasingly attractive. Because of changes in the capital and real estate markets, it is an excellent time to purchase these properties. The following highlights the benefits of owning a government-leased building:
- Stable and high quality cash flows;
- Long term leases provide protection against market volatility;
- Attractive returns given the low level of risk involved- an excellent bond alternative;
- Appreciation potential of land or building residual;
- Excellent investment vehicle for prevention of asset value erosion in any investment portfolio;
- Preservation of principle;
- Helps improve diversification in an investment portfolio, and;
- Leases backed by full faith and credit of U.S. Government.
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