According to traditional wisdom, investing in nonresidential properties in Massachusetts and elsewhere is a smart move. However, is this still true in 2019, particularly in the commercial real estate industry? According to industry experts, investing in commercial real estate indeed still has quite a few pros worth paying attention to.
For one, according to experts, nonresidential real estate always offers some return. This makes it different from shared ownership, as a poor management decision or market conditions that are unfavorable could quickly wipe out share values. As long as people invest wisely, they can expect to enjoy steady rental income streams in addition to owning the properties themselves.
The challenges that come with commercial properties include the fact that commercial rentals in some major markets are on a decline due to what industry experts describe as a natural market correction. In addition, commercial property investment requires capital and can be tricky for someone without much knowledge in his or her sectors of interest. Still, a commercial property offers the benefit of typically returning more than residential parties do — anywhere from six percent and 12 percent per year, versus between one percent and four percent per year for a single-family residence.
Considering its good points, commercial real estate remains a high-potential investment area in 2019. Navigating a commercial property transaction, however, can seem daunting due to the many complex moving parts involved. Fortunately, an attorney in Massachusetts can provide investors with the legal guidance they need to make sure that their rights and best interests are protected during these types of transactions.