Since 2000, commercial properties around the country have nearly tripled in value. While we’ve seen some decline in recent years due to the COVID-19 pandemic, the market is bouncing back fast. With appreciation steady throughout the decades, many investors are eager to embrace this exciting market segment. Like any investment, though, commercial property is not without its risks. Knowledge is power, and with the right foresight, you can make a smart investment that will pay off in spades.
Know Your Market
Understanding your market is key to making a smart investment in commercial real estate. Ideally, you want property in a city with a flourishing population. Take a look at population density trends and property values before pulling the trigger on a particular property. Comparable property values can shed light on your potential investment and give you an idea of how your space might grow with the community over time.
Understand the Demographics
Demographics of a given area can give you an even better idea of what a property is actually worth and how it may increase in value over the coming years. For instance, many communities are currently experiencing housing shortages. For investors, owning an asset in high demand can be an incredibly worthwhile prospect. On the other hand, in especially population dense areas, locals may resist the increased traffic and other perceived negatives that your development might bring to a neighborhood.
Types of Commercial Property
There are seven main types of commercial property: residential, office, hospitality, retail, agricultural, and the “special” category, which can include medical, religious, or recreational properties. For investors, choosing between these options often boils down to interest and personal experience. As the world of commerce continues to evolve, we may see the use of property change, too. By understanding the unique challenges and benefits of these categories, you can make the investment that makes the most sense for your goals.
Find Your Space Today
When you’re in the market for commercial real estate, call the professionals at Insight Property Group. Our Raleigh & Durham service areas include Wake County and surrounding areas of North Carolina.