Commercial real estate is a giant umbrella of sorts. What usually comes to mind when speaking about this subject are offices, retail spaces, airports or church buildings. Along the lines of commercial investments though, are homes that carry multiple units, whether this consists of two, three, four or 100 homes – within the home.
In fact, these types of investments are the best kinds for today’s real estate climate. Here’s why:
· The population is ever increasing, with no signs of slowing down.
· The cycles of rent will continue at an unstoppable pace, as older generations buy new homes, and younger generations start out with rent.
· Multiple generation homes are increasing too, and these multiplexes offer a comfortable solution for living within the same place.
· Fortune 1000 companies are recommending employees to work out of their homes. As a result, many office spaces have closed up shop and are manning operations virtually.
· Technology also eliminates the costly overheads of running a brick and mortar store.
Based on these reasons, there’s been a decline in commercial property leases. There are no statistics needed to disclose this. Just drive or walk along any city in America, and the situation is evident with commercial lease signs plastered across windows. Meanwhile, the same cannot be said about residential properties.
Property owners for housing still have a clear advantage with excess demand. Renters are required to undergo rigorous screening, prove their income, background, and the likes.
Investors should therefore look closely at commercial properties such as mobile home parks, single family homes or multi-family homes versus retail and office.
Warren Buffet has done this successfully for years. He saw opportunities in mobile home parks, where others saw cynicism.
Bottom line: Everyone needs a place to stay.
In addition, Jason Hartman advises readers about the profitability of self storage units. With the unstable levels of unemployment seen across the nation, people are moving freely to where the jobs are, or where there’s support from family and friends.
Again, measure the scale by the amount of U-haul trucks you see lining the streets on busy days. No statistics are needed.
Bottom line: Everyone needs a place to store possessions, while transitioning from place to place.
Instead of delving into the uncertainty of office spaces, Jason Hartman recommends residential units in plexes or mobile parks, as well as storage. (Top image: Flickr |Omaha Homes for Sale)
The Commercial Investing Center Team