Real estate is a complex industry. With the fluctuations in populations, migrations, economy, interest rates and more, there is a lot to consider. There are lots of moving parts and also lots of evolving areas in this competitive field.
At its heart, there are three main types of real estate to consider. They include residential, industrial and commercial. In this article, we’ll cover some of the main points about commercial real estate and the financial options businesses have when they’re looking to expand their operations to new locations.
What Are The Key Opportunities of Commercial Real Estate?
First, commercial real estate relates to properties and land used for business ventures and generating revenue. Within that realm, however, it can be narrowed down further into three key business opportunities.
- Real Estate Development
- General Brokerage
- Management of Properties
With real estate development, you might be buying land to then build commercial buildings on. Typically, you won’t find many independent contractors taking this on themselves. Instead, commercial real estate companies buy out a big plot of land for massive development.
In general brokerage, there are commercial real estate agents that represent either sellers or buyers of commercial property. Typically these brokers work on commission and can specialize within specific business niches (think retail, office, etc.).
For property management, there are managers that make sure a property is filled, staffed, maintained, repaired and handle all of the day-to-day operations.
Depending on what area of commercial real estate you’re in, you can then decide what types of properties to start looking for. There are lots of options to choose from, so finding your niche early can be especially helpful.
What Are Commercial Real Estate Trends?
No matter what industry you’re in, there are bound to be some trends. Some of these trends are influenced by improved technology while others may have to do with a change in government regulations. Here are a few of the top commercial real estate trends going on right now:
First, there are a lot of technology-based brands that are driving ways to change the way we buy and sell commercial real estate. Through increased access to listings online to new ways to negotiate contracts, this area is definitely in flux.
With the age of the internet and immediate access to information, mortgage lenders are relying on technology to help reduce their rates and speed up the application, approval and funding process of commercial real estate loans.