Real estate is well-known to be a solid investment Many millennials are choosing to invest in real estate rather than the stock market, for instance.
This interest in real estate as an investment opportunity is driving the cost of homes through the roof. Home values have risen by an astronomical 7.2% since 2018.
Luckily, houses are just one type of property that’s suitable for investment. Commercial real estate can be just as lucrative but is often overlooked in the speculative frenzy!
How To Get Started Investing In Commercial Real Estate
Commercial real estate as an investment opportunity isn’t quite as immediately obvious as residential properties. You’re less likely to see ‘For Sale’ signs posted up outside of a storefront or empty office, for instance.
The rules and laws around financing can be slightly different, as well. All of these details mean that there’s often less competition for an investment opportunity.
Do Your Research
Commercial real estate is more complex and convoluted than residential. There are often different rules and laws around zoning, for instance. Each industry has its own specifics you’ll need to master if you want to find a solid investment, as well.
This means you’ll need to research the industry you’re looking into as well as the usual real estate research. Look into the market for the area where you’re looking to invest. Don’t limit your research to one neighborhood, either, but look into the going rates for the entire city.
This way you’ll be well-armed with facts and empirical data when it comes time to negotiate a deal or looking for real estate loan options!
Choose A Property Type
Commercial real estate is a vast umbrella. It encompasses many different types of properties that are suitable for investment opportunities. Some are more solid than others.
Multifamily properties encompass commercial real estate with more than two residences. This could encompass everything from a duplex to sprawling apartment complexes.
Office buildings are commercial real estate properties for white collar work. This could be anything from a repurposed home to a 100-story skyscraper.
Retail properties are some of the best-known types of commercial real estate. Storefronts are the most obvious example but that’s just the beginning. A showroom could be another example of a type of retail property, as well.
Finally, industrial properties are often commercial real estate also. A warehouse is one example of an industrial building that is also a commercial building. Shipment or processing plants are another.
It’s no wonder that commercial real estate is so popular for those looking for a solid investment opportunity. Take your time, do your due diligence, and find a loan with good terms. You’ll end up with a nice little nest egg that will serve you well into retirement!
Looking For More Real Estate Advice?
Real estate is exciting but it’s also daunting to get started with. Whether you’re looking for advice on finding a good commercial real estate property or how to sell your home, you’ll find something to inspire on our pages. Browse our Real Estate articles for even more inspiration!