Commercial Real Estate Investment: Is It for You?
When you’ve walked into a mall, or a retail shopping center, or picked a friend up from their apartment, I’m sure the last thing you thought you were doing was walking into an investment or income property. Guess what… YOU WERE! Commercial real estate investing is the greatest secret hiding in plain sight. Every day, we are engaging in a much larger game of asset acquisition, management, and disposition, which is a fancy word for “selling or disposing of an asset.”
For years, we’ve seen countless shows about flipping houses or buying houses and turning them into rental property, but there’s been little content about commercial real estate. From personal conversations with many friends and different people, there is a type of mysticism as it pertains to commercial real estate. I can see how it could be intimidating, but the one question we need to answer to alleviate some of that is, “What is commercial real estate?”
Commercial property, or commercial real estate, is buildings or land intended to generate a profit, either from capital gains or rental income. Commercial property includes office buildings, medical centers, hotels, malls, retail stores, multifamily housing buildings, farmland, warehouses, and garages.
Why would people invest in commercial real estate? Many people leverage CRE (commercial real estate) as part of a passive income strategy, to earn income with minimal labor. These investors also look to gain through value appreciation and regular cash flow from these properties. Historically, CRE has been a key factor in building generational wealth. For centuries even, buying and selling commercial land and buildings has accounted for some of the wealthiest people’s net worth.
Commercial Real Estate and economic growth:
With the Fort Worth/Dallas metro growing at a rapid pace, there are many companies who’ve decided that our cities are a great place to invest and expand their production/distribution footprint. As you drive down our major highways across the city, you may have noticed more and more tall, concrete buildings shooting up like weeds in your garden! Look to your left and to your right. What do you see with multiple cars parked and others going in and out of it? You’re looking at someone’s live action CRE investment.
With market fluctuation and conventional ways of investing challenged, investors have been rapidly expanding their deployment of capital into income generating commercial real estate. The real question here is, are you ready to venture into CRE yourself? Let us help you! To learn more please visit our LEAGUE Commercial Real Estate page.
