Commercial Real Estate
Currently, 11 trillion US dollars of commercial real estate is sold each year, making up more than 10% of the United States GDP. This is twice as much as is traded in the stock market, and makes commercial real estate an effective choice for long-term, stable income.
Commercial real estate is commonly divided into six categories: office, industrial, retail/restaurant, multifamily, land, and others such as hotel, hospitality, medical and self-storage developments. The basic trading process for commercial property is essentially the same as for residential property, but the main concern (namely, return on investment), is different, as are the risks.
All around the world, the basic things to consider when investing in commercial real estate are similar: location, transportation convenience, popularity, purchasing power, future urban planning, etc. For retail spaces such as shopping malls and department store buildings, investors also need to consider the current lease with a tenant. Out of tens of thousands of US retail spaces, the average net return for rent (Cap Rate) is between four and ten percent (4-6% is normal, while 7-10% is considered good). The historical Cap Rate report provided by the seller is crucial to any decision to invest, but there are many other factors to consider. The Cap Rate for a well-known, large-scale business may be smaller, but more reliable. Others may offer higher, but more short-term rewards. Some leases may leave an investor open to extra risk. Because of this and many other factors, it is advisable to consult with very knowledgeable, local people before making an investment. This is where we come in.
If you are interested in commercial real estate investment in the United States, please contact us. We have projects of various sizes (from $1 million US dollars and up) for you to choose from. We can also work with you to look for a project that fits your requirements.