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4 Reasons Why You Need to Get into Commercial Real Estate in 2021

Commercial real estate is the new goldmine for investors. The commercial space is primed for long-term growth as we continue to trudge through Covid-19 restrictions and marketplace retraction, so prices have never been more favorable. Consider adding commercial property to your portfolio when going forward into the new year, especially if you’re a serious wealth builder.

Lock in with the favorable pricing structure.

Market retractions occur naturally every few years. Often these are due to market conditions or political volatility, but the coronavirus pandemic and 2020, in general, have shown that markets can be severely rocked by nearly anything. A major corrective period in the market is a prime opportunity for buyers to capitalize on once in a lifetime pricing reductions. This pattern holds true in both the stock market and in physical assets. Real estate prices such as stocks are on a long term uptrend that never sees dramatic dips outside of market correction events like the housing collapse or this year’s pandemic. While you should never invest in the misery of others, hardship makes for a gauntlet that separates mentally tough investors from their weaker competitors.

While others are selling off stocks and bonds in a frantic bid to protect themselves from losing short term cash, you must start buying now in order to lock in decades-long profit projected into the future. All markets rise over the long term, so buying at a steep discount is always advantageous. It takes foresight to lock in these long term gains, but it’s the only way to forge a path to future wealth.

Commercial real estate deals with rooted leaseholders.

Unlike in the private marketplace, commercial real estate is all about long term commitments and relationship building. Take a lesson from Alastair Barnes from JLL Capital Markets. His team broke the mold with a hybrid office/retail development in Austin, Texas earlier this year. Their approach deals directly with the human aspects of business development, and yours should too. Understanding that your tenants are humans that are working toward the betterment of their personal lives, their communities, and their businesses through a hybrid approach are the best way to forge long-lasting relationships that offer you a solid long term rent check. Your renters will also consider you as an honest and reasonable landlord. The commercial marketplace is filled with professionals seeking the space to make their dreams a reality, and therefore the marketplace is chock full of responsible tenants seeking to make an honest buck while living out their passions.

Commercial properties break the mold of traditional investing.

Alternative investment opportunities like the Yieldstreet platform are growing in popularity among high net worth investors. However, you may be wondering, “is Yieldstreet legit?” The answer is yes. Alternative investments are crucial to developing a well-rounded portfolio, and the addition of commercial properties is a great way to break away from the mainstream, medium-earning investment vehicles. Venturing into new territories also opens up your investing game to additional high-yield opportunities that you may not have thought of in the past. It’s all about exposure, and that begins with this lesser utilized side of the real estate marketplace.

Commercial property is flexible.

Finally, commercial properties are far more flexible than residential real estate. Commercial space can be used by any type of business whereas a three-bedroom home is only worthwhile to a group of tenants seeking that particular layout. The ability to transform the space based on the user’s needs means that real estate is more versatile, and a single space appeals to a far broader segment of the market than one in the residential listings might. A savvy commercial investor can leverage this unique feature in order to find tenants in a flash. Commercial real estate is primed for major gains in the coming year and beyond. Get in now while the iron is hot.