Real estate has always been known as the safest investment.
In fact, real estate investment completed after proper investigation and evaluation of the property (to determine current and future value), can lead to a huge profit.
This is one of the reasons why many people choose real estate investment as their full-time job.
Discussions of real estate tend to focus on a residential real estate; commercial real estate, except for experienced investors, typically seems to take a back seat.
However, a commercial real estate is also a great option for investing in real estate.
The commercial real estate includes a wide variety of property types.
For most people, a commercial real estate is just a complex of offices or factories or industrial units.
However, this is not all that commercial real estate is concerned with. There is much more to it than a commercial real estate.
Shopping malls, health centers, retail units, and warehouses are good examples of a commercial real estate, as are vacant lots.
Even residential properties such as apartments (or any other property consisting of more than four residential units) are considered commercial real estate. In fact, this type of commercial real estate is in great demand.
So, are commercial real estate really profitable?
Absolutely, in fact, if it weren’t profitable you wouldn’t be writing about commercial real estate at all!
However, with commercial real estate recognizing the opportunity is a little more difficult when compared to a residential real estate.
But the gains from the commercial real estate can be enormous (in fact, much larger than you might realize from a residential real estate transaction of the same size).
There are many reasons to delve into commercial real estate investment.
For example, you might buy to resell after a certain level of appreciation has occurred or to generate substantial income by leasing the property to retailers or other types of businesses or both.
In fact, the development of commercial real estate is treated as a preliminary stage.
An indicator of the imminent growth of the residential real estate market.
Therefore, once you recognize the likelihood of significant commercial growth within a region (whatever the reason, i.e., municipal tax advantages), you should begin to evaluate the potential for appreciation of commercial real estate prices and implement your investment strategy quickly.
With respect to commercial real estate investment strategies, it is important that you identify and establish investment objectives (i.e., immediate income through rent versus later investment income through resale) and that you know what you can afford and how you will make the purchase.
It would be prudent to determine your goals and then meet with your banker (or financier(s)) before looking at and selecting your commercial real estate.
Also stay open-minded and understand that if the right (perfect)
If the opportunity presents itself, your investment strategy may need to be revised and altered, sometimes considerably.
For example: If you find that commercial real estate (i.e., land) is available in large pieces that are too expensive for you to buy on your own, but represent a tremendous opportunity, you might consider forming a small group of investors (i.e., with friends or family) and buying them together (then splitting the profits later).
Or in another case (i.e., when a retail boom is expected in a region), although your commercial real estate investment strategy was designed around the purchase of vacant lots, you may find it more profitable to buy a property such as a shopping mall or small plaza that you can lease to retailers or a property that you can convert into a warehouse for the purpose of renting to small businesses.