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Opportunities to invest in real estate

On Behalf of | Jun 8, 2018 | Commercial Real Estate

Warehouses in Texas and throughout the country have risen in demand in recent years. In the first three months of 2018, industrial retail sales were $16 billion, which is a 20 percent increase from a year ago. Furthermore, vacancy rates are down to 5.1 percent. Industrial spaces have become more popular because they don’t take as much money to own and operate. They are also in demand because of the rise of e-commerce.

Since companies want to ship items to consumers faster, they need to be stored closer to the consumer. As demand increases, property owners could see rents go up by 10 percent or more per year. However, before a person chooses to buy an industrial property, it is important to pick a design that allows for the right tenant. It is also important to buy in a market where vacancy rates are low such as Oakland, Atlanta or Seattle.

As cities have limited land available to build on, tenants are more likely to stay where they are. Those who don’t want the chore of running their own building can invest in a more passive manner. For example, an individual could choose to invest in a REIT; they often offer dividends that can be used to generate cash flow from the investment.

Those who want to invest in commercial real estate may want to consult with an attorney prior to doing so. They attorney may be able to review the terms of a commercial building purchase contract or otherwise assist in any due diligence that needs to be done. This may help to uncover any zoning or title issues related to the property. If the property is to be rented, an attorney may help draft a commercial lease.


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