The Top Clan of Investors Queuing Up for Commercial Real Estate

It’s official. Commercial real estate investment is the hottest buzz word being circulated amongst investors right now. As the economy continues to flourish and a lot of residential and commercial sectors return back from the economic down turn, commercial real estate investment is high on the rise particularly in markets like San Francisco, Florida and Chicago.

Commercial Real Estate Investing

A survey conducted by the Investment Program Association testified the same point. 500 high-net-worth investors were asked about the future of profitable investment ventures in the country, and around 80% were of the opinion that commercial real estate market will be ruling the stock market for at least 5 years from now on.

As more and more investors are being drawn to the commercial real estate market, the competition is getting tougher and tougher with each passing day. Many secondary markets are opening up their doors, giving maximum investors a chance to try their luck and make way for a viable source of profits and cash flows in the future.

The current situation of the economy is perhaps the main trigger in the sudden appeal of commercial real estate investment.

Markets that were previously strong victims of foreclosures and financial crashes are steadily getting back on their feet again, and many investors are turning towards them as the economy continues to progress and the financial market flourishes.

Chicago is one such market under the spotlight of investors, where residential as well as commercial real estate investment is looking to be one of the brightest ventures for tomorrow. Developments and financing for projects that had previously gone into the dearth of delinquency are coming back out in the open again and real estate investors are definitely considering a handful of them for a profitable deal in the future.

And the good news here is that it is not only the foreclosed properties in the commercial sector that is coming back steadily on a strong footing. New developers are also ready to take the advantage of the situation as buyer demands are increasing and the real estate prices are coming back to profitable highs once again.

According to the lawyers at Freeborn and Peters LLP,  several of Chicago’s best commercial properties went into severe states of distress when the economic downturn arrived in the scene a couple of years ago. However, a lot of developers from the previous crisis are coming back into the market as the market situation continues to heal. A lot of banks, investors and lenders are also financially backing these builders, making way for a strong potential growth in the commercial scene at Chicago.

Development financing is on the rise now, and with more and more builders capitalizing on the strong outlook of the real estate market, it is suffice to say that the commercial real estate market holds a lot of potential and growth in the coming few years.

Until then, it is property flipping of foreclosed ventures that is keeping investors busy in the flourishing real estate market.

Source: Survey statistics by the Investment Program Association
http://www.ipa.com/