Why You Should Invest in Commercial Real Estate

Commercial real estate is expected to continue to be one of the top investment opportunities in the coming years ahead. Market analysis and industry experts are honing in on this niche investment opportunity, leading many to ask, “why should I invest in commercial real estate?”

The answer is quite simple really: commercial real estate has a proven track record of being a successful investment vehicle. The biggest difference in today’s market is that the path to getting started with commercial real estate investments in Austin, Texas is clearer than ever. In fact, Texas is home to some of the nations hottest commercial real estate markets in 2021. In this post, we’ll cover why investing in commercial properties might be the right investment for you.

Why Should I invest in Commercial Real Estate Developments?

Investors should consider buying, or investing, in commercial real estate developments because it has a historical record of high potential yield. According to recent studies, commercial real estate has consistently outperformed other investment vehicles such as stocks and bonds. Over a typical 25 year period, commercial real estate has proven to provide stable growth, while avoiding the impacts of negative economic cycles.

While commercial real estate is not completely immune to economic impacts, the changing market needs and utilization of in-depth lease agreements have helped contribute to the industry’s long term stability. Furthermore, commercial real estate is often privately owned, which in turn creates added benefits to investors, like avoiding volatility seen in publicly traded assets.

Commercial real estate industry is only expected to grow. In addition to traditional commercial real estate investment opportunities, industrial real estate in Austin and multifamily development projects in Austin are expected to be among the strongest investment opportunities.

Commercial Real Estate vs Residential Real Estate

As an investor you are well aware of what investment opportunities are available to you. Two of the most popular opportunities are commercial real estate and residential real estate. Fortunately, these opportunities are not mutually exclusive. If you’re trying to decide between investing in commercial real estate or residential real estate, here are a few factors to consider.

As an investor, your primary concern is likely to be the profitability of your investment. Commercial properties tend to require a much larger investment, hold more tenants, and have the potential for higher profit yields. However, the flipside of this is that commercial real estate also requires significant capital and expertise when getting started. We recommend working with the best commercial real estate developers whenever possible.

A benefit to working a local commercial real estate development company is that they will have the specialized knowledge of the market area, property history, and be able to accurately estimate potential revenue. Whereas with residential real estate it tends to be a bit more beginner friendly and requires less extensive knowledge of market trends and local area markets.

Benefits of Commercial Real Estate Investing

When deciding on whether or not to invest in commercial estate properties, the most obvious place to find the answer to the “WHY” is to examine the benefits offered by such investments. Commercial properties represent the chance to achieve financial success, build a strong and diverse portfolio, and more. Here are some of the benefits associated with commercial real estate investing:

  • Returns – The profitability of commercial real estate is what makes it such an attractive investment opportunity. Commercial real estate can provide upwards of 10% in return on investment. For comparison sake, annual stock return is roughly 3%.
  • Equity – Equity is the amount of value an investor has built up in a given asset over time. In commercial real estate, investors build equity in properties quickly and benefit greatly as the property appreciates in value.
  • Cash Flow – Like many real estate investments, commercial real estate investments can provide stead, long-term cash flow. While many investments only present profit when bought & sold, commercial real estate investments have the chance to generate monthly income.
  • Investment Portfolio – Investors at all experience levels can benefit by having a diverse investment portfolio. The opportunity to invest in a tangible asset, such as a commercial development, can strengthen your financial standing.
commercial real estate development in austin texas

Casey Development, Ltd. : Commercial Real Estate Developers in Central Texas

Casey Development Ltd. is the leading commercial real estate developer in Central Texas, serving San Antonio, Austin, San Marcos, and more. If you’re looking for a partner in commercial real estate, look no further that Casey Development Ltd. Contact us today to learn more about our commercial property investment opportunities.