Commercial Real Estate

Now is a great time to invest in commercial real estate. The economy is growing at a sensible pace, not in an unreal frenzy as it was during the dot.com boom in the late 1990s. And despite offshoring woes, small entrepreneurs with fresh ideas are gaining steam, and they're in need of space in which to work.

There are basically four types of commercial real estate: office, industrial, retail, and multi-unit residential properties that are purchased for investment. A growing trend is to combine some of these uses as in urban neighborhood in days of yore. People in suburban communities are getting tired of sprawl, and getting more interested in in-fill projects that build up in areas that are already developed as opposed to out into what has been rural land. So, if this trend gains more popularity, the lines between the different types of commercial real estate will become more blurred.

All types of commercial real estate are depending upon the health of the economy, both the county's economy overall, and local economies. Some parts of a country can be depressed while others are booming, and sometimes an entire nation is in recession, and the market for all types of commercial real estate is not good.

If you're interested in a particular type of transaction, it's good to go to someone who specialized in the type you're interested in. That broker or representative will have expertise gained from years of experience that will save you time and money in the long run. Some firms have a different division for each type of commercial transaction.

Your broker can tell you what is expected of you in each type of transaction. Some, such as apartment units, require constant upkeep. If you're about to retire, investing in apartment buildings might not be the proper route for you. You might want to buy a share in a partnership that owns a string of office buildings.

What if you own land and want to building something? You'll need to find out exactly what your land is zoned for. Of course, it's better to find that out before you purchase land, but sometimes you inherit land or have had undeveloped property for a long time and have only recently gotten sufficient resources to proceed with building something.

Once you determine that your proposed project fits into the zoning requirements for your property, you'll need to reach out to the surrounding community. Just because something is legal doesn't mean it's popular or even wise. Getting input about the workability of a project before you proceed will save a lot of grief down the line, especially if you're proposing an innovative type of mixed-used building or complex.