Investing in Commercial Real Estate in 2023 Which Commercial Property Types Hold Strong in Weaker Economies? Investing in commercial real estate has been an attractive option for investors looking for stable returns over the long term.
Many of these properties, such as warehouses and office buildings, are often smart commercial real estate investment with high ROI potential.
Armed with the right information, strategy, property type, and loan type, investing in commercial real estate can be a smart decision, even during an uncertain economy.
Trouble in Big Tech
We’ve experienced a boom in the tech industry over the years, with companies like Google, Amazon, and Microsoft driving up the demand for commercial real estate and office buildings in tech hubs like the San Francisco Bay Area, Seattle, and New York City.
However, after seeing the recent layoffs occur with many of the Big Tech companies, including Twitter, people may question whether investing in commercial real estate is still a smart move.
For example, Microsoft recently announced a big layoff, and in turn, the tech giant is spending $1.2B to consolidate office space.
A recent article by Business Insider stated, “copycat behavior is a key factor in the mass layoffs sweeping tech,” according to Stanford professor Jeffrey Pfeffer.
While this may seem concerning, it’s important to remember that the tech industry is just one of many sectors that rely on commercial real estate.
Which Commercial Property Types Hold Strong in Weaker Economies?
JPMorgan predicts that real estate will continue to be a good investment, even in a weaker economy.
Commercial properties are essential to the livelihood of many industries that last in a tougher economy, including manufacturing, food systems and grocery, and e-commerce warehouses, for example.
However, CNN reports that bank loans for commercial real estate are tightening up due to the current financial climate – especially small banks, which usually tend to have a high amount of commercial real estate loans.
This is why it is important to know what to look for and to review all your options to choose the best funding source, whether or not you work with a bank.
Investing in Commercial Real Estate in 2023
If you’re considering investing in commercial real estate, there are a few factors to keep in mind to ensure you’re making a smart investment decision.
Important Factors to Consider:
- When investing in commercial real estate, it’s crucial to secure the best source of capital at the best rates. This will help you maximize your returns and minimize your risk.
- Some loan types to consider include conventional loans, SBA loans, or private capital.
- Each loan type has its own benefits and terms, so it’s important to do your research and choose the best option for your investment strategy.
At Innovative Capital, we work with you to consider all possible options and create a loan strategy that best fits your needs.
With our wide connection of referral partners around the country, we are confident that we will be able to secure the best funding source possible for your commercial real estate investment property.
Request a quote below and one of our team members will reach out to you shortly with options.