The commercial real estate market is an 893.2 billion dollar industry in the United States alone. If you are thinking of investing in commercial real estate, you stand to make a large profit.
This is providing that you learn how to start investing the right way. The following brief guide will outline a few reasons to invest in commercial real estate.
It will also make clear the benefits of investing so you can start buying commercial properties and make wise commercial real estate investments.
What Is Commercial Real Estate?
Commercial real estate is property used to conduct business. It is often rented to various enterprises as tenants. Commercial real estate varies from things such as retail strip malls to office parks and skyscrapers.
As opposed to residential real estate, nobody lives there—they instead use it as their workspace. It is also important to note that commercial real estate is generally not used for heavy industry.
Heavy industry is often limited to areas that have been zoned as industrial real estate. If you are ever in doubt about what type of real estate you are looking at when pursuing opportunities, contact the seller to confirm the designation.
Tips for Investing in Commercial Real Estate
One of the most important things you need to do before acquiring a property is to conduct a proper phase 1 esa (environmental site assessment). Commercial property is notorious for having a high potential for bad environmental quality.
If there ever was something such as a gas station present on the property in its history, you may inherit somebody else’s Superfund Site. The cost of cleanup and remediation can far exceed the property value.
All of this is easy to fix by getting proper environmental testing before pursuing a purchase. This includes getting things such as soil and water samples analyzed to prove the land is devoid of contaminants.
Another great tip for investing in commercial real estate is to find a trusted professional like the real estate agents at Royal LePage who can help guide you through the whole process. That way you won’t be stuck shooting in the dark until you hit something.
Finding commercial real estate on your own might be easy, but you won’t be getting the same access to the top-quality properties that a real estate professional has.
If you are interested in finding the best commercial real estate professional, look here for more information. That way, you will have the best real estate experience possible.
The last thing you want is to fall victim to a scam or purchase the wrong property with hidden negative features. A reputable commercial real estate professional will vet real estate opportunities for you, so this does not happen.
Now Is the Time to Invest
Investing in commercial real estate right now is a once-in-a-lifetime opportunity. Economic rebound is something we are all striving for.
Once the boom times begin, you want to already have your assets to rent out to thriving businesses. Don’t miss the opportunity now, invest in commercial real estate today. For all your other pertinent information check out our blog!
