There are many people that invest in commercial real estate. And they do not do it without purpose; commercial real estate is such an investment that proves to be a lot profitable. However, there are also some people that are not so sure whether to invest in commercial properties or not. They are concerned about the economic scenario, the market conditions and then they ask themselves is it worth the investment in today’s time? Well, the answer is yes. It is a very good idea to invest in commercial real estate today this is because many investors and researchers believe that commercial real estate investing will continue to be lucrative and stable in the future.
Here are some of the reasons as to why commercial realestate investment will be fruitful
There are strong economic indicators
The year 2016 had a slow start, however, the scenario started to change by the third quarter of the year when the gross domestic product of the United Stated picked up. According to the latest estimate from the Bureau of Economic Analysis, real GDP advanced 2.9 percent in the third quarter of 2016, this was seen as a healthy improvement over 1.4 percent gain in the second quarter.
The sales are looking good
The sales volume for commercial real estate has increased since 2014 and has kept on increasing till 2016. Therefore, the statistics show that there are high chances that this pattern will continue to grow and the sales will keep their head high for commercial real estate in 2017 too. Thus, creating great opportunity for investor to invest in these properties and gain revenue.
There are attractive returns
Today’s environment can rightly be said as low-interest environment and in such an environment, investors are shifting towards commercial real estate investment that are providing a higher yield. While commercial real estate also has its risks, but on the whole it has more yield than other investments and that makes it more attractive than other investments according to the recent data, over the past five years, US pension funds have been consistently increasing allocations to real estate.
High risk is being rewarded with high reward
The fact that it is giving off high rewards can be seen from the fact that since the elections, the Dow Jones Industrial Average has six new record closing highs. And high prices clearly do not keep investors out of the stock market. However, the case of real estate is even stronger than these stocks. Buying commercial real estate today is much more rewarding as compared to the low yields on other long term investments.
There are many opportunities
Urban residences and the conveniences they offer have been rising in popularity, especially with millennial home dwellers. However, instead of damaging the suburban market, this creates an opportunity for household developments outside the city that offers high end amenities that are typically found in the urban settings.
By looking at the above information, you can now clearly make up your mind about investing in commercial real estate market and how profitable it can be for you.