Unlike residential real estate, Commercial real estate investment is evaluated, bought, and sold based purely on numbers – on a set of factors that describe what kind of return on investment you can expect with the property.
Commercial real estate investment is reaping benefits for investors
‘Commercial real estate investment’ refers to the class of real estate that is primarily meant for investing money for profits later on. Examples of such properties include:
• Restaurants (including franchises)
• Office buildings
• Self-storage (Mini-storage) / industrial
• Strip malls
• Hotels (also called “hospitality”)
• Multi-family / apartment buildings
Why invest in commercial property?
Unlike residential real estate, Commercial real investment is evaluated, bought, and sold based purely on numbers – on a set of factors that describe what kind of return on investment you can expect with the property. Most Commercial real estate investment is expected to make a return for you on an on-going (monthly) basis. With the retail boom and increasing return on investment in the commercial real estate market, the value of commercial real estate has grown by leaps and bounds, particularly, in the commercial areas, where the local retail shops and shopping complexes have been replaced by huge and swanky malls.
What to expect?
Remember though! Commercial real estate investment is a long term opportunity; do not expect to increase your net worth overnight. No one is going to profit all the time. Real estate investors have to suffer through times of little to no cash flow – it is part of the game.
This may cause panic but if you can stick with it for the long term, cash flow will increase. Investing especially in real estate is not for the week of mind or body. It can be frustrating, and stressful. But for successful investors the rewards are priceless.