The impact of COVID-19 on real estate has many hesitant about making a commercial real estate investment. While the market is fluctuating, there are several things to know that can help you make a decision on the matter.
Know the Market Trends Right now, data shows that the need for office space may be dwindling, in light of the movement to remote employment. There is also an indication that rental rates aren’t a guarantee as unemployed tenants fall behind on payments. There may be more stability in warehousing or e-commerce areas of development. Be Patient Making a commercial real estate investment takes a lot of time. If you try to rush the process, you can end up with a property with no value and leave yourself no financial resources to make it profitable. Focus on Location Once you have an idea of what the market is doing, focus on a location that shows promise. Depending on your design for the property, whether attracting retail shops or setting up a multi-family dwelling, where your property is located influences rental rates, vacancies, and competition. Heavy traffic may be appealing for shops, but less so for residential services. Doing your research on all aspects of investment can reduce the potential for a complete property failure. With the economy being what it is, your investment needs to be able to ride out the roller coaster.
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AuthorHello, my name is Roger Dennison and I'm a successful commercial real estate broker, with more than 20 years in the field. Archives
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