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Why investing in commercial real estate may be smart

Now may be a good time to invest in commercial real estate in Maryland and other parts of the country. Besides the fact that commercial properties are more valuable nowadays, there are other reasons why this type of investment could be a wise decision.

Investing in commercial real estate can produce substantial wealth and create long-term returns and seems to be continuing to be a valuable asset. According to market analyst Real Capital Analytics, the price for commercial properties has surpassed the 2008 peak and these properties are still going up in value. A large number of real estate investors are optimistic of the market, according to the Urban Land Institute. Also, for the first half of 2016, total commercial real estate sales in the U.S. amounted to more than $139 billion, according to reports. As a result, private equity real estate investors can experience remarkable returns.

The steady growth of jobs and a robust economy are further factors that encourage commercial real estate investments. In fact, during the third quarter of 2016, real GDP increased nearly 3 percent. More jobs have caused dropping vacancy rates and higher rents, which has increased the demand for places for employees to live.

While investing in commercial real estate is projected to be quite profitable, investors and developers may face risks and liability issues. Therefore, they may wish to seek legal advice when making these kinds of decisions. An experienced real estate attorney could assist with negotiations, paperwork, permits, financing options, local ordinances, zoning issues and various other important matters.

Source: The Huffington Post, "8 Reasons Why Commercial Real Estate Investing Still Pays", Michael Episcope, Dec. 8, 2016

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