Though residential real estate investment definitely has its perks in the current market scenario, most experts still bet their money on the commercial sector. With the current economic situation back on the track to recovery, commercial real estate is definitely set to rise in the upcoming quarter.Apartment real estate investing

In the last few months, commercial real estate value has seen a substantial increase not only in prime markets like San Francisco and Seattle, but also in the smaller tertiary market areas. Secondary market arenas are looking more profitable than ever, with more and more investors turning towards commercial sectors in Pennsylvania, Ohio and Colorado and North Dakota etc.

So what does the future hold for investors in this sector? And if commercial property investment is steadily in the rise, what are the market trends and demographics that make up for a safe and viable investment?

Smaller Markets Set to Rise in 2013

Top experts and investors are not only considering the prime down town markets in the main metropolitan hubs of the country, but also drifting towards the secondary market sectors that are looking favorable in the past few months.

According to a recent report published by Sperry Van Ness International Corporation, secondary real estate markets in Oklahoma, Arizona, Pennsylvania, Ohio and Louisiana amongst a handful of others are all under the radar of real estate investors because of their recent development in green energy and oil operations and explorations. Profitable real estate action is set to increase in these regions, as more and more people are heading to these locations because of new employment prospects.

The main reason for the growing popularity of secondary markets is the upturn of economy which has given rise to several new businesses being set up. Green energy and fossil fuel companies are rapidly being set up in these smaller states and these demographics have made the real estate market considerably profitable for not only commercial but also residential purposes.

However, smart investors do not just jump into the commercial real estate bandwagon just because the numbers are looking favorable. Research and expert opinion is one of the key factors that will decide your success and cash flow in the long term. For this reason, commercial real estate investment requires a little more attention to detail in order to get your hands on a profitable deal.

Follow some of these handy pointers to make sure that you lock in to a deal that proves to bring in decent cash inflow in long term:

First thing first, research and guidance should be the first things on your mind when it comes to commercial real estate investment. If you are investing for the first time, make sure that you get help from a professional or a property investment company to steer clear of any major losses and scams.

Next in line is some basic calculation and knowledge of common metrics like the cash on cash formula and cap rate. These will help you evaluate the amount of returns and profit that you can expect from your commercial property in the long run.

Finally, it is important to have the right ‘eye’ to find the best deals and profitable commercial property in the market. With the spring opening up new opportunities to buy and sell, now is the best time to put your research cap on and embark upon a commercial real estate investment that pays!