As of last year, the value of commercial and residential real estate was up to over $750 billion. Smart investors see commercial real estate for sale and realize that owning a business, school, hospital, hotel, or other commercial real estate could be an investment that can weather anything the market has to throw at them.
When potential buyers start crunching numbers and realize that the average ROI (return on investment) for commercial real estate listings is at least 8%, they get more interested.
Property lenders are looking for owners who have a vision for the property, either to maintain the existing business or to put considerable time and effort into renovations and upgrades.
Lenders usually ask for about one-third of the asking price as a deposit, and will screen carefully for credit and references before deciding to sell. After all, commercial real estate does tend to return on investment, and sellers want to make sure that the money goes to someone who is willing to upkeep and invest in the property.
Really, commercial real estate investing is a seller’s market. Buyers are more willing to pay the asking prices and insofar as there as been an increase in demand over the last two years, sellers can pick and choose their conditions for sale.
This is especially true in larger cities, where real estate continues to be at a premium. A real estate investment company can provide detailed information about a building’s history and potential to put money back into the pocket of an educated, committed buyer.
In another few years, there may be a slight downturn in buyer demand for new commercial properties (real estate being cyclical and subject to fluctuations based on economic considerations), but for the time being commercial properties (and rental properties) continue to be in high demand.
A real estate investment company can walk first-time investors through the process of acquiring property that is more likely to have a positive financial return over time.