Property investment can be intimidating at first, but both exciting and lucrative once you get the hang of it. There are an enormous number of types of properties to invest in, and understanding your options is essential for a sound investment.

Many new investors gravitate to residential property — and in fact, the most substantial property investment most people make in their lives is a home. Still, commercial real estate should not be overlooked as a sound source of investment. Commercial property has the potential to yield major dividends, provided you are up to the challenge. Here are three reasons to consider investing in commercial property.

1. Long-Lasting Tenancies

A major reason to invest in any type of property is to collect rent from tenants. For many, this brings to mind residential leases. However, it is worth considering that commercial leases tend to be longer, and more stable, than residential leases. Commercial tenants are thus highly valuable, prone to staying in one place for an extended period of time, locked in for the long haul. As a property owner, this allows you to avoid the hassle of searching for tenants and showing a unit.

Provided there are no major disruptions to the unit and you reliably take care of needed maintenance, this can be a relatively low-stakes way to make a steady, passive income.

2. Potential For Future Investments

Commercial real estate tends to be especially valuable, and generally more expensive than residential property. Indeed, it can sometimes be notably harder for individuals to secure financing for commercial property purchases.

Still, that value may pay off in other ways. Commercial property can be readily collateralized, affording the possibility of leveraging one sound commercial investment into another purchase, and so on. In fact, owning commercial property can be a great way to build up a strong real estate business.

3. Benefits as a Business Owner

This last benefit applies if you are a business owner. If this is the case, owning your own commercial real estate can be enormously helpful for your enterprise. It will afford you more control over your space, and the ability to physically do with it what you want. It will also give you more say over — and income from — neighboring tenants, ensuring you can cultivate the right space for your business.

Ultimately, if you are thinking of investing in real estate, commercial property may well be worth your consideration.