This post originally appeared on tBL member blog SVN Southland Commercial Blog and is republished with permission. Find out how to syndicate your content with theBrokerList.
Christopher Fojo, CCIM, gave a clear summary of the basic investment options available for regular people like you and me. First, he described who it is that actually invests in commercial property. After that, he wrote about the differences between several investment options, including the Real Estate Investment Trust, Direct Real Estate Investment, and the Property Syndication. The article covers a few other additional items. We look forward to reading more articles from Christopher!
Have you ever been driving down a busy street and seen the many retail, office, medical, and industrial buildings dotting the landscape. Roads like Lake Mary Boulevard, Rinehart Road, and State Roads 434 and 436 are brimming with commercial real estate properties of all different shapes and sizes. Have you wondered who owns these properties? Maybe your first reaction upon seeing an interesting property is: “I would love to own a building like that!” Well, for the most part, you can. Many of those properties are owned by ordinary people – just like you and me!
These days anyone with a few extra dollars sitting in the bank is very aware that the rate of interest earned on their savings is likely less than 1%, where commercial real estate could earn 4% to 10% per year or more on your investment. Over the past five years commercial real estate has benefited, as investors seek to find better returns.
The pricing of commercial real estate has slowly recovered from the depths of the recession due to increased buyer demand and the recovery of rental rates. It has also benefited from builders being slow to build new products, hence the supply has not grown at the same rate as the demand for space and therefore prices have recovered….