Why Now is a Good Time to Invest in Commercial Real Estate

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Real estate has traditionally been one of the best areas in which to invest money and create wealth-building opportunities. Unfortunately, the recession and housing crisis in 2008 frightened many people away from real estate investing, especially commercial real estate. However, the market has radically improved since that dark time, with real estate prices climbing to pre-recession levels in most cities, coupled with a welcome increase in the purchases of both residential and commercial properties.

All facts considered, now is a great time to purchase or lease commercial real estate. Inflation and interest rates remain at historically low levels, giving the commercial real estate investor an opportunity to obtain more value for their money.  Likewise, if you are a business owner searching for a good location to open a new business, you will find many choices to choose from in this thriving market.

Acquiring mortgages in order to purchase commercial properties for investment purposes is a much easier process today. Previously, the real estate market struggled to recover from the painful financial effects of the recession of 2008 caused by ‘Liar Lending’ practices that almost ruined this nation’s economy. Not only did the financial backlash make commercial properties much harder to finance, but properties for sale were harder to find as well. No one wanted to sell at such low prices and lose money on their investments unless they were forced into foreclosure by bankruptcy.

Since the recession began, the stringent financial requirements that resulted from the economic turndown made the obtaining of mortgages for commercial investing very difficult, especially if your credit history wasn’t spotless and your credit rating stellar. Financial institutions became extremely cautious when it came to commercial real estate investment loans. However, those strict rules required to obtain a mortgage in the recession years have gradually relaxed, making it possible for the real estate investor to buy more commercial properties and ramp up their investment portfolios.

Recently, commercial property owners have seen an encouraging increase in lease inquiries by desirable tenants, meaning the rental market is flourishing as well. Right now is prime time for entrepreneurs to start their search for a commercial location to start a new enterprise before prime rental space becomes scarce and leasing prices rise in the future.

Some commercial investors are concerned that the recent financial improvement in the real estate market is only a bubble and does not represent a lasting change. However, despite the hesitation of some over-cautious real estate investors, commercial property prices continue to rise and the level of sales continue to increase as time passes. The high rate of foreclosures of former years has dramatically fallen from recession levels making the market healthier and more appealing for buyers, renters, and investors alike.

In today’s recovering economy, investing in commercial real estate continues to yield solid opportunities and returns for the investor looking to expand their portfolio and earn more passive income. Compared with the dramatic dips and lows of the stock market, commercial real estate is one of the more stable of investments and the returns are dramatically better than the interest a bank will offer. Commercial real estate investing creates a stream of income that continues to perform well and offers an appealing tax write off. Such investments also bring substantial profits if the investor decides to sell the property in the future.

Commercial real estate investors from other countries also find investing in the United States real estate market a sound idea, considering these investments to be safe and profitable. As the American commercial real estate market continues to grow and attract more foreign business, the economy will become more sound and stable.

Contacting a realtor from a reputable firm that specializes in commercial property investing will prove to be an invaluable guide for an inexperienced investor that needs to gain a better understanding of real estate market opportunities. With such expert guidance, the fledgling investor will be able to expand their investment portfolio to create more personal wealth. An experienced investor can find assistance with a professional realtor as well. The realtor will refine and expand the investor’s search, locating lucrative investment opportunities. A realtor can also provide leasing services for those commercial investors that prefer not to deal with the responsibilities of being a landlord.

A reputable real estate firm can help guide investors, business owners, and property owners to make wise financial decisions and create a sound and stable financial future for themselves and their families.



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