It’s no secret that the commercial real estate market has been booming recently. The latest statistics show plenty of opportunities for investors looking to get in on the action. We will cover some of the most recent statistics related to investment in commercial real estate and give you an idea of what might be coming up next.
The number of transactions for commercial real estate is at an all-time high.
In 2016, the total amount of money spent on these deals was $148 billion. There were more than 65,000 individual properties that changed hands in this fashion. Since there is a huge demand and not enough supply right now, prices have skyrocketed. In most cases, the average purchaser can get their money back within 18 months.
The cost of commercial real estate is out of control.
Finding a property that fits your budget can be very difficult and won’t have you stretched thin on cash. That being said, it’s still possible for investors who are willing to do their research and look at the long-term picture instead of only focusing on what they need right now.
Investors are going to have to change their strategy to get a good deal.
Since the current market is difficult for those who don’t have much money saved up, investors will need an alternative plan of attack if they want success. The best way to do this is by talking with professionals and learning what your options are when it comes to commercial real estate investing.
Investors see returns of 18 percent on their investments.
According to the latest statistics, investors who bought retail space in 2017 could see a return rate of between 16 and 22 percent. This impressive amount shows just how much money can be made if you have enough capital available for these types of deals. As time goes on, these numbers will only increase as more and more people get involved with commercial real estate.
There are plenty of opportunities to invest.
According to the latest statistics, there is an estimated $11.45 trillion worth of commercial real estate in the United States alone. This means that as long as you have a plan and some money set aside for these types of deals, then it’s likely just a matter of time before you can find something that works for you.
Commercial real estate is not a get-rich-quick scheme.
There are plenty of horror stories around when it comes to commercial real estate investing and how sellers end up taking advantage of someone’s ignorance. If you want to be successful, ensure that you educate yourself on the market before making any moves whatsoever.