Although there is ample reason for optimism about the state of the commercial real estate market in America, real estate investing companies still exercise discretion and caution when they are looking to expand their commercial holdings. With low vacancy rates pushing retail rents upward and tourism rates rising across the country, savvy investors are searching for ways to become involved in a market worth more than $10 trillion.
While some investors favor larger properties like hotels, office buildings, and public venues for sporting events, many investors are looking to invest in a larger number of smaller properties. With increased emphasis on investing locally, some investors choose to acquire multiple fast food franchise locations, rural and urban bed and breakfasts, thrift stores and laundromats.
The maintenance costs incurred by a series of smaller venues can be an attractive alternative to larger buildings that, if unfilled or unused, can rapidly become a liability in a commercial portfolio. Buying smaller businesses can allow investors the opportunity to follow tenants’ successes more closely; keeping an eye on their investments can be as simple as a quick drive around town.
Any investor’s portfolio is going to align with their personal tastes. Some enjoy the potential of larger facilities and are willing to work with tenants to provide security and maintenance. Other top real estate developers are committed to a return to the days when a firm handshake could serve as a background check, and when looking potential commercial tenants in the eye was more telling than any internet search history could ever be.
What every investor wants is a solid return on their investment, and for some, real estate investing companies can provide the initial introduction to the marketplace that they need in order to make long-term decisions about where they can best invest their time and resources. Investing in commercial properties remains an avenue for creativity, public service, and community improvement; commercial real estate development companies are beginning to think long-term in a very encouraging real estate market.
