Bill Asher is a commercial real estate investor based in Los Angeles, California. Leveraging his entertainment industry experience, Bill Asher focuses his commercial real estate investments on entertainment properties.
As spending on experiential entertainment grows, real estate investors are becoming more interested in owning entertainment venues. There are plenty of entertainment properties investors can purchase, including movie theaters, amusement parks, gaming casinos, resorts, golf complexes, and cultural centers like aquariums, museums, and zoos.
There are many ways investors can invest in these properties. A common one is the sale and leaseback approach wherein investors purchase the properties outright then lease them back to entertainment companies. The leaseback often takes the form of a triple net lease agreement where the tenant pays rent and is responsible for the building’s ongoing expenses including property taxes, building insurance, and maintenance. This way, the owner gets fixed and consistent cash returns without the hassle of maintaining the property and paying additional expenses.
Another option for investors who want to purchase entertainment venues but do not have enough money to make an outright purchase is to simply buy shares in a specialty, entertainment-property-focused real estate investment trust (REIT). REITs offer high dividends, security due to long-term lease contracts, as well as liquidity since the shares are traded in stock exchanges.