Real estate investors in California are probably aware that prices for commercial real estate in most sectors have gone back up to their pre-recession levels. After the economic downturn in 2008 and 2009, there were many properties left vacant. Now that prices have recovered, home buyers and investors are coming back to formerly abandoned markets.
While commercial real estate prices have gone up in recent years, interest rates have stayed at all-time lows. The combination of high prices and low interest rates have created an interesting time for real estate investing, and many new investors want in. According to the Bankrate Financial Security Index Survey that was released in July, 54 million Americans think that real estate is the best place to invest funds that won’t be needed for 10 years.
As buyers return to properties that were vacant during the recession, a lot of money is being spent on real estate renovations. A national survey taken by BiggerPockets.com found that around 28 million real estate investors are spending $9.2 billion to renovate properties. With the new renovations, investors now have the opportunity to purchase move-in ready homes and newly updated apartment complexes.
There are many different ways to invest in commercial real estate, and each type of real estate investment has its own benefits and challenges. A new investor may want to talk to a commercial real estate law attorney about investing in office buildings, warehouses or residential properties. An attorney may be able to advise an investor during the purchase process and then help to create lease agreements.