Prospects of Investing in Commercial Real Estate

Investing in commercial real estate has always been an attractive venture for many. Driving past an empty office building or a multi-family dwelling often makes one wonder about the potential rewards that could come from dialing the realtor's number, giving it some tender love and care, and marketing it right. 

However, investing in commercial real estate is not as easy as taking the keys in hand and setting up infrastructure to support tenants. It comes with its fair share of risks alongside the potential rewards. To provide clarity on whether you should invest your time, money, and energy into commercial real estate investment, we sought expert opinions. 

Rinal Patel, founder of We Buy Philly Home suggests focusing on the type of property first when considering buying commercial real estate. With remote work becoming more prevalent due to recent circumstances and increased internet-based sales; certain properties like office buildings may not be wise investments anymore.  

"The rise in e-commerce and remote work has increased demand for buildings such as multi-family apartments and industrial warehouses," she says "The surge in e-commerce has led to an increase in investor interest in industrial warehouses."  

Patel also points out that traditional properties like offices or retail facilities are experiencing more vacancies leading to lower rental income due to changing trends while multifamily homes are seeing higher demand making them potentially wiser choices for investors. 

But before diving headfirst into landlord life Patel advises: "Even if these homes might still be a wise long-term investment, it's crucial to fully investigate the state of the market and tenant demand prior to making any investment." 

Levelle Benson CEO of Benson Home Buyers believes location plays a key role when considering investing in office spaces or retail outlets despite changing trends towards digital workspace. 

"Office spaces can still be valuable investments provided they're located at prime locations offering modern amenities," he says. He further adds that brick-and-mortar retail stores need foot traffic hence high-traffic areas are recommended for such investments. 

David Greiner, seasoned real estate attorney and owner of Grenier Law Corp. suggests that understanding local markets and assessing risks are the key traits for successful commercial real estate investors. 

"Start small, find an experienced partner or hire a property manager," he advises newcomers to the industry. Patience is also crucial in this field as returns won't happen overnight but if done right long-term income and appreciation can be substantial. 

In conclusion, while investing in commercial real estate can indeed open up lucrative possibilities it's essential to do your homework first. Understand market trends, consider location factors, assess potential risks and most importantly have patience because success in this field doesn't come overnight but when it does the rewards can be significant.