Article written by Investor’s Business Daily – Thu, Jan 10, 2013 5:55 PM EST
Should you invest in commercial real estate
A lot of investors are — in everything from offices, warehouses and retail to the stand-out category of recent years, apartments.
The commercial property market has been recovering from the downturn faster than housing has, observers say, with valuations and returns strong the past two years.
Investment returns are expected to stay above 8% the next few years — better than other asset classes with steady returns, such as bonds.
“It’s hard to find good-yielding low-risk investments right now so capital wants to be in this asset class,” said Real Capital Analytics Managing Director Dan Fasulo, who recently purchased a small apartment building in the Bronx.
Total returns in commercial property include gains attributed to net operating income, plus appreciation and capital gains.
IBD looks at some factors that may weigh into investing decisions: Jobs Economists consider job creation the most important metric in commercial real estate, especially as it pertains to office space. The more people working, the more office space needed.
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Jim Allen earned his bachelor’s degree from Baylor University in Waco, Texas and his masters from Louisiana State University. In addition to his multiple degrees he has taken numerous coursework in banking, marketing, accounting, and business law. As a complement to his sales experience, Jim also has 25 years experience in commercial real estate financing.
Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).