Investing in real estate remains a tricky idea for most, particularly where single-family homes are concerned. As a report from Bloomberg Businessweek shows, the U.S. housing market still hasn’t recovered following its sudden crash in Q2 of 2007. Even with the continued stagnation of the U.S. housing market, more and more people across the country continue to seek out commercial real estate loans and purchase commercial properties. Even with the financial upswing, many still wonder whether now is really the time to for financing commercial real estate and making an investment.
Commercial Real Estate Remains Steady, Even When the Home Market Fails
When compared to U.S. housing numbers, those for commercial real estate are far stronger. While commercial real estate lending and purchasing dropped off significantly in Q1 of 2009 in direct response to the economic crisis, investments in commercial real estate quickly recovered. In fact, the commercial markets today are in better shape than they were before the crash. On the other hand, the housing market remains far below pre-2008 levels. From an investing standpoint, it’s no wonder financing commercial real estate is widely viewed as a much better option than buying into homes.
Commercial Real Estate Investing is Booming Across the Country
The effects of the continued interest in buying commercial real estate can be seen across the country. The Buffalo News reports that thanks to the improved sales of multi-million dollar apartment buildings, warehouses, and senior communities, the commercial real estate market in the Queen City is set for a $600 million year.
Likewise, Houston is seeing its economic fortunes reversed, as a renewed interest in financing commercial real estate and making long term investments is generating stability for lending institutions and construction firms. As reported in The Houston Chronicle, within the next few years, the city is expecting more than 17 million square feet of commercial space in the form of offices to open, putting it well ahead of any other city in the United States. In short, from Houston to Buffalo, more and more investors are making the decision to invest in commercial real estate. With history showing that commercial investments represent a great way to generate income, while simultaneously sheltering investors when compared to the housing market, it’s no real secret why many are examining it as an investment option.
Are you feeling good about buying commercial real estate? Tell us why or why not in the comments below.