The stock market has proven a volatile beast throughout 2018. The market rose and fell throughout the year, making 300 to 400-point swings in a single day commonplace. This volatility led many investors to look elsewhere.
When you hear the acronym IPA you likely think of a nice, cold, hoppy India Pale Ale. But, as noted in a recent publication in Kiplinger, this acronym can also serve as a useful tool to guide those who are interested in investing within the commercial real estate market.
Commercial properties are available and the market is strong. A recent report by the National Association of Realtors (NAR) finds commercial investment sales were growing throughout 2018. The report also notes that those who enter this market rarely have problems filling their leases. This fact, along with the reality that the commercial real estate market is generally big enough to withstand fluctuations the residential market cannot, may combine to signal a green light for many to move into the commercial real estate market.
Environmental regulations can impact real estate transactions. As noted in a publication in the Southwestern Law Journal, these regulations can result in restrictions and liabilities that stick with the property after a transaction is complete.
The Federal Bureau of Investigation (FBI) released a publication to inform the public of a scam that specifically targets real estate transactions. As a result, the agency has encouraged vigilance before moving forward with a real estate transaction.
The commercial real estate market is booming. Entrepreneurs that are looking to join this market either individually or with a group of like-minded investors can take steps to better ensure the process goes smoothly once they find the right property for their investment purposes.
Selling commercial property is much different than putting a residential site on the market. This market is competitive and filled with discerning buyers. Potential buyers are often entrepreneurs and investors who manage several properties. A seller needs to put in work to bring the right buyers to the table.
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:
Standard commercial real estate agreements are tempting. This boilerplate contract may come with at a lower initial price point, but the long-term consequences of a fill in the blank document can be very costly.
Entrepreneurs that start up a new business or look to change locations will likely need to negotiate a commercial lease. These negotiations are often intimidating. An entrepreneur for a small business may go up against a landlord that has negotiated dozens of these contracts in the past.