Insights

Why You Should Consider Investing in Commercial Real Estate

When it comes to investing, real estate is one of the best avenues to explore. Commercial real estate specifically has the ability to generate significant return on investment. Over the last few years with the rise of various television shows, fix and flip propertieshave become the trend in commercial real estate investing. However, there are a lot more avenues for potential investors to look into.

Investing in Commercial Buildings

Returns on commercial buildings are typically higher than those on residential properties. However, the cost of investment is much higher when compared to investing in residential properties. When starting to delve into purchasing entire buildings, there is a lot of knowledge and research required. There are multiple options when considering investing in these commercial properties. Investors can buy the entire commercial building or buy shares of a commercial property developer. Sometimes, investors create a joint fund that focuses on commercial investments.

Investing in Warehouses

The growth of e-commerce has placed increasing importance on warehouses. Companies need to stock their store their inventory, and warehouse spaces are often long-term commitments. For an investor, high returns can come from warehouse space especially when it is rented out to bigger companies.

Investing in Working Spaces

The start-up boom across the world has helped fuel the growth of commercial real estate. The reason being the availability of workspaces for these start-ups. With these businesses scaling up, they’re looking for co-working spaces. There are numerous benefits of moving out of your home office to a commercial property.  Investing in commercial working spaces can be a real gain for investors. As demand for these spaces continues to increase, finding tenants to rent becomes easier. These spaces can also double as event venues when they aren’t in use.