How to Evaluate a Commercial Investment?
Commercial property value doesn’t depreciate like stock market investments can and in commercial real estate markets like Colorado, the value of commercial real estate is increasing at record rates. Commercial property often offers a better rate of return than residential property investments. However, with any investment opportunity, doing your research beforehand is wise.
Is Commercial Real Estate a Good Investment?
In the words of Andrew Carnegie, the business magnate who led the expansion of the American steel industry in the late 19th century, “Ninety percent of all millionaires become so through owning [commercial] real estate. More money has been made in [commercial] real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in [commercial] real estate.”
While the economy may have evolved since the late 19th century, Carnegie’s sentiment still holds true today, because in answer to the question, “Is commercial real estate a good investment?” – we say yes! There are a number of advantages to owning commercial real estate, especially in active markets like Colorado. In the following article we will outline some of the pros and cons to a commercial real estate investment.