Investing in commercial real estate has always been a huge pro in the real estate world. It’s an asset class which allows you to bring in long-term income.
However, with the rise in interest rates since the Election a lot of people are wondering, is it still a good idea to invest in commercial real estate?
Well I have good news for you, the answer is yes! Investors are optimistic about the market and believe that there is still tremendous value out there. Most investors today agree with this statement!
The good news: multifamily properties are a type of investment property that will always remain in high demand. Disciplined and successful investors are always searching for real estate deals that make sense. They believe that commercial real estate investing will continue to be stable and provides a huge opportunity to build wealth long-term.
These 5 factors explain why commercial real estate values are going to continue to rise:
- Office rents are continuing to climb. There is a high demand for office space and in most building’s, there is limited vacancy. This causes rent price to rise, which provides a window of opportunity for investors purchasing office buildings.
- Job growth is also on the rise! Continued job growth has led to low vacancy rates and rising rents. This has created a high demand in the commercial real estate market. This drives demand for office space, apartments, and other multifamily units. This is especially relatable to millennials who need a place to work and live.
- The return of commercial real estate is still attractive. Yes, commercial real estate has risks, but the fundamentals and return remain strong. The rewards of investing in commercial real estate outweigh the risks significantly.
- Multifamily units will always be a stable option. There is a possibility of recession which could pose threats to office spaces and office buildings. However, multifamily properties will remain stable. Why you ask? The reason multifamily units are so stable is because people will always need a place to live. Apartments will always be in a high demand, so investing in multifamily properties will always be a smart play.
- Sales are looking good! Growing markets create opportunity for real estate investors to realize impressive returns. This will allow investors to accumulate substantial wealth in the years to come.
It’s never too late to start investing in commercial real estate, why not start now! As you can see commercial real estate investing is remaining stable and multifamily units will always be in high demand. So my question for you is: why wouldn’t you want to invest in commercial real estate?