Commercial real estate can be a fantastic investment – but you need to stay conscious of changes in the market and ongoing trends.
In a lot of different areas, property prices have risen dramatically. So have rents. But not every commercial property is likely to perform the same.
What are the industry experts predicting? Here are the basics:
1. Office buildings and retail spaces are a bit risky
Everybody who can work from home has either already started or is moving in that direction. Investing in office space right now means taking a chance. According to the experts, suburban office properties are likely to do better than those deep in urban areas.
Retail spaces are also pretty dicey. Brick-and-mortar stores have taken a big hit because so many people have resorted to online ordering and home delivery – even for everyday items. If you are going to invest in retail spaces, you may want to think about buildings that are zoned to accommodate emerging industries, like the cannabis market.
2. Industrial buildings, warehouses and multi-family units are a better bet
A dearth of available homes for sale and rising rents make multi-family rental units a good choice for commercial property investors. The market is likely to stay strong for the foreseeable future.
Industrial complexes, abandoned malls turned into warehouses, and warehouse developments are also thriving – mainly for the same reasons that office buildings and retail spaces are not.
There are a lot of different factors to consider when you’re investing in commercial real estate. If you want to be successful, you need to ensure that you have experienced guidance along the way. Don’t sign a purchase contract until you’ve had it thoroughly reviewed for any irregularities.