Commercial real estate in Houston and around the country can be a profitable investment, something that is reflected in the growing interest of high-net-worth investors in these projects. While commercial real estate projects have long been appealing for more local or smaller investors, a range of high-profile companies and individuals have become involved in an array of real estate ventures. Of course, urban real estate has long been an appealing investment, given the vast growth in value and the scope of many urban projects, which may be valued in the high millions of dollars.
Indeed, commercial real estate projects are also often appealing for global companies and individuals looking for a secure yet highly profitable investment. Cities like Seattle, Vancouver, and San Francisco have attracted a wide variety of firms with their highly valuable real estate and opportunities for development. While billionaires have become major players in the industry, less-wealthy people have also become major investors in both property development and private equity real estate firms. While publicly traded investments like REITs may have higher levels of vulnerability to changes in the stock market, commercial development projects often offer strong profitability with more limited risk profiles.
In addition, property investments may also offer interesting tax incentives. In addition, these types of investments provide ongoing cash flow and tax advantages. They are less risky than stocks while also being backed up by real assets in property, significantly different from some of the more high-yield types of securities.
Commercial property investing is of course not without pitfalls. People who are contemplating such an activity might want to have an experienced real estate attorney assist with the necessary due diligence and document review.