Real-estate has always been referred to as the safest of investments.

In reality, real estate investment completed after proper research into and evaluation of the property (to determine actual and future value), can lead to tremendous profit. 
This is one reason many individuals choose real estate investment as their full-time job.

Discussions about real estate tend to target on residential real estate; commercial real estate, except to seasoned investors, typically generally seems to take a back seat. 
However, commercial real estate can be a good option for purchasing real estate.

Commercial real estate features a large number of property types. 
To a majority of people, commercial real estate is only office complexes or factories or industrial units. 
However, that is not totally all of commercial real estate. There's far more to commercial real estate. 
Strip malls, healthcare centers, retail units and warehouse are typical good types of commercial real estate as is vacant land. 
Even residential properties like apartments (or any property that consists in excess of four residential units) are thought commercial real estate. In reality, such commercial real estate is quite definitely in demand.

So, is commercial real estate really profitable? 
Absolutely, in reality when it weren't profitable I would not be currently talking about commercial real estate at all!! 
However, with commercial real estate recognizing the chance is much more difficult when comparing to residential real estate. 
But commercial real estate profits may be huge (in fact, much greater than you may realize from a residential real estate transaction of the exact same size).

There are lots of reasons to delve into commercial real estate investment. 
For instance you may purchase to resell after a certain appreciation level has occurred or even to generate an amazing income by leasing the property out to retailers or other business types or both.

In reality, commercial real estate development is treated as a preliminary 
indicator of the impending growth of the residential real estate market. 
Therefore, as soon as you recognize the probability of significant commercial growth inside a region (whatever the main reason i.e. municipal tax concessions), you must begin to evaluate the prospect of appreciation in commercial real estate prices and implement your investment strategy quickly.

Regarding commercial real estate investment strategies it is essential that you identify and set investment goals (i.e. immediate income through rental vs later investment income through resale) and that you know what you are able and how you'll effect the purchase.

It would be wise to ascertain your goals then meet with your banker (or financier(s)) prior to viewing and selecting your commercial real estate.

Also remain open minded and recognize that should the proper (perfect) 
opportunity present itself, your investment strategy might have to be revisited and altered, sometimes considerably. 
For instance: If you find that commercial real estate, (i.e. land) is available in big chunks which are too expensive for you yourself to buy alone but represents tremendous opportunity, you might look at forming a small investor group (i.e. with friends or family) and buy it together (then split the earnings later).

Or in another case (i.e. when a retail boom is expected in a region), though your commercial real estate investment strategy was devised around purchasing vacant land, you could find it more profitable to purchase a house such as a strip mall or small plaza as possible lease to retailers or a house as possible convert in to a warehouse for the goal of renting to small businesses.

So the bottom line is, commercial real estate presents a veritable plethora of 
investing opportunities, you simply need to recognize them and go for it.


Published by Whitney Morgan