Le blog de Nestore

Why invest in commercial premises?

Unlike residential real estate, investing in commercial premises has solid financial assets. Rents are generally higher, and stability is reinforced by the signing of a commercial lease of 3-6-9 years, guaranteeing visibility over several years. This security appeals to investors looking for regular income. Another advantage: net return is often better than residential (between 6 and 12% depending on the city), compared to 2 to 5% for housing.

However, investing also involves risks: rental vacancies that can be long if the premises are poorly located, more complex technical standards (ERP, accessibility, fire safety), and more demanding management. The balance between local commercial profitability and operational risks therefore depend heavily on the location and type of business hosted.

Profitability of a commercial space

La profitability of a commercial space generally varies between 6% and 12%, an attractive level compared to residential. Three key factors influence this performance:

1. The location : a place in the city center or in a dynamic district (Marais in Paris, Presqu'île in Lyon, historic center of Bordeaux) will be more expensive, but more sought after by retailers.
2. The type of activity : local businesses (food, health, services) offer better resilience than more cyclical sectors.
3. The state of the local : a renovated, well-equipped and up to standard premises will more easily attract solvent tenants.

Buying a commercial space: empty or already rented?

The choice between a local void And a local occupied is strategic.

• Premises already rented : it ensures immediate income, with a commercial lease ongoing that secures the investment. This is ideal for limiting vacancy risks, but profitability may be slightly lower, as the purchase price incorporates this security.
• Empty room : it allows you to choose your tenant and to set the rent according to the market. On the other hand, it exposes to a more or less long vacation period, especially if the premises are not located in an area with high demand.

An informed investor will often prefer empty premises in dynamic areas, and occupied premises in secondary areas to secure their income.

The steps to buy commercial space for rent

Buying commercial space follows a rigorous process:

1. Market study : analyze local demand, competition and neighborhood attendance.
2. Choice of location : favour established or rapidly developing shopping areas.
3. Legal analysis : check the condominium regulations, urban planning authorizations and ERP standards.
4. Financing : get a Credit for the purchase of commercial premises, whose conditions differ from a traditional mortgage (rate, term, larger contribution).
5. Signature of the compromise and the authentic act : as with any real estate, but with a reinforced analysis of commercial leases and rental obligations.
6. Rental and signing of the commercial lease : the key stage that determines future profitability.

Taxation and financing

La taxation of the rental of commercial premises differs from that of housing. Rents are taxed in the category of land revenue, unless the activity involves ancillary benefits (rare case of BIC regime). In some cases, VAT is applicable to commercial rentals. Investors must therefore anticipate these fiscal aspects to optimize their net return.
On the financing side, the bank credit for the purchase of commercial premises often has slightly higher rates than for residential properties, and a higher contribution (20 to 30%). Banks mainly analyze the solidity of the commercial lease and the quality of the tenant in place to grant financing.

Mistakes to avoid when buying commercial premises

Common mistakes of beginning investors include:

• Buying without market research : a poorly located room can remain vacant for several months.
• Underestimate the work and upgrades to standards : PMR accessibility, fire safety, ventilation, etc.
• Sign an unbalanced commercial lease : too favorable to the tenant, it can reduce future profitability.

Support from a commercial real estate expert (such as Nestore) considerably limits these risks.

Buying a commercial space to rent it: smart move in 2025?

Commercial real estate is evolving in 2025. Major French cities remain attractive, but success depends on choosing the right locations:

• Paris : Le Marais and Saint-Germain-des-près remain very popular with fashion and lifestyle brands.
• Lyon : Presqu'île and Part-Dieu attract innovative concepts.
• Bordeaux : Sainte-Catherine Street remains the busiest artery in Europe.

The rise in power of Pop-up stores and hybrid businesses bear witness to a renewed dynamism. Experts agree thatbuy profitable commercial space in 2025 remains an opportunity, provided you carefully select the location and anticipate demand.

Optimizing the profit with pop-up stores

To maximize the profitability of commercial premises, especially in periods of transition or in areas with high turnover, Pop-up stores represent an innovative and flexible solution. Businesses like Nestore allow owners to rent their space to shops for ephemeral transactions, creators or companies in market testing, without a long-term commitment. This approach offers several advantages:

• Flexibility : rent for a few weeks or months, ideal to fill vacation periods between two classic leases.
• Income diversification : attract a variety of brands (fashion, food, tech, art) and boost the local image.
• Increased visibility : pop-up stores generate traffic and can attract the attention of long-term tenants.
• Simplified management : Nestore.com takes care of networking, logistics and promotion, reducing the administrative burden for the owner.

This strategy is particularly suited to premises located in trendy or tourist neighborhoods, where there is a high demand for temporary spaces. In 2025, with the rise of ephemeral concepts and brands in search of agility, integrating pop-up stores into your rental strategy makes it possible to boost profitability while limiting the risks of a prolonged vacation.

Conclusion

Buying commercial space to rent it remains one of the best wealth diversification strategies in 2025. With higher returns than residential and rental stability guaranteed by commercial leases, investment is attracting more and more people. However, success depends on three pillars: strategic location, balanced lease and controlled taxation. To secure your project, rely on retail and commercial rental experts.

Did you know that?

La profitability of a commercial space is on average between 4 and 8%, against 2 to 5% for an investment in residential housing according to immobilier.notaires.fr.

FAQ — Buying commercial space to rent

Is it profitable to buy commercial space?
Yes, with an average return of 6 to 12%, higher than residential real estate.

What is the average return on commercial premises?
Between 6 and 12%, depending on the location and type of business.

Should you buy an empty or occupied space?
An occupied space immediately secures the income, an empty space allows more freedom but implies a risk of vacancy.

What is the taxation for renting a commercial space?
Rents are taxed as property income, with the possibility of VAT depending on the lease.

How to finance the purchase of commercial premises?
Through a specific bank loan, with conditions different from a traditional real estate loan.

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