I see more and more projects appear in the commercial real estate. There are a lot of potencial in this sphere.
Real estate has and will always be around. In terms of commercial, here's some interesting facts:
It is generally acknowledged that investing in CRE has a number of benefits over its residential counterpart:
CRE provides higher returns and rental yields than residential;
lease agreements are usually middle or long-term (3 to 10 years) compared to rental agreements that tend to be short-term (6 to 12 months);
CRE asset value is increasing over time and enjoys excellent potential for appreciation;
tenants often take a contractual obligation to incur many costs, for example insurance;
tenant-landlord relationships are professional and regulated by the agreement.
On the contrary, according to Ian Formigle at CrowdStreet, investing in single-family real estate and operating it as rentals has a number of challenges8:
lack of sustainable cash flow;
excess risk (investing in residential real estate often involves more than 100% equity risk);
lack of economies of scale (items such as roofs, heating systems, etc. demand large expenses and any force majeure events can consume all available income, if not more);
binary occupancy (100% or 0%);
costly management;
entirely market dependent (the property’s value does not affect profitability. The latter depends on the conditions dictated by the market);
geographical constraints (investors are, for the most part, looking to invest in nearby properties in order to oversee them).
i think so too, property bussiness sector was very promising at current and for future dor sure.
