There are many opportunities for investors within the commercial real estate market. However, a failure to recognize some common myths as falsehoods can steer an investor in the wrong direction. As such, it is wise to take note of these three common commercial real estate myths to help better ensure a successful investment strategy within this market:
- E-commerce trumps brick-and-mortar. Internet is not king when it comes to the commercial real estate market. In-person sales compose over 90 percent of the retail market and, according to a recent white paper published by the RE Journals, the next step in the shopping experience will likely emerge within the brick-and-mortar store. Professionals within the field predict the next step will be experiential retailing or interactive shopping. The piece uses a recent Starbucks Roastery that opened in Chicago as an example. Patrons do more than just have a cup of coffee, they walk through the roastery and see how the product is made before enjoying the fruits of the workers’ labors.
- Office experience is all about cost control. Yes, when it comes to office spaces the bottom line is still important. However, it is also important to ensure an office space offers employees a positive experience. Experts note tenants are likely moving towards a combination of open, collaborative space and private work areas to meet this need and increase talent retention within their organization. As a result, more than looking for cost control tenants are likely looking for a space that provides this positive experience at a reasonable cost.
- Suburban office spaces are a flop. Suburban locations that offer easy accessibility to highways or transit stations are desirable.
Debunking these myths and planning investment strategies accordingly is one step towards protecting your business interests. An attorney can provide additional assistance during your real estate project and further mitigate the risks that can come with these deals.