Investors at all levels have opportunities to enter the commercial real estate market. According to the National Association of Realtors, 2018 has been a strong year for growth, especially in Houston and Dallas-Fort Worth. Growing employment has contributed to demand for commercial properties in multiple sectors. The long-term leases that are typical among commercial tenants help to protect owners from low occupancy rates and establish consistent cash flow.
Many niches exist within the commercial market, and investors can choose properties that match their skills and interests or are performing well in their region. For example, coin-operated car washes or laundromats work well for an owner with mechanical expertise or a relationship with a mechanical company that can maintain the equipment. Storage unit buildings attract investors who want to avoid high operating and maintenance costs. Flexible warehouse spaces represent another type of building that an owner could market toward businesses ranging from microbreweries to technology startups.
Commercial investors can also select buying options according to their budgets and desire for control. Co-investing could give a buyer a way to acquire a share in a building by pooling resources with other investors. Buying shares in a real estate investment trust represents a completely hands-off way to have a stake in commercial properties. Some investors choose to exert full control by directly financing developers.
Regardless of the approach taken to investing in commercial real estate, a person could consult an attorney prior to making an investment. A lawyer could inform a person about obligations and liabilities prior to completing a transaction as well as help to negotiate the terms.