During the past few months, many movements are directly impacting the economy as well as property investments throughout the United States, including New York. These events include the recent shutdown of the government, trade wars and increasing interest rates. On top of this, technology is advancing quickly. In light of the uncertainty that exists in the current market, here are a couple of ways that commercial real estate investors can stay ahead financially.
First, real estate investors may want to reconsider their current mixes of tenants. In the past, tenants signed leases spanning 10 years to 15 years. However, with the uncertainty in today’s business market, tenants are now looking for leases with shorter terms. For this reason, it may behoove real estate investors to offer leases that meet their needs. This will increase their chances of experiencing rapid increases in their net incomes.
In addition, property investors may want to take diversification more seriously in 2019. Not every property market is affected by economic downturns in the same way. For instance, while the fall or rise of employment figures may impact the market of office properties, industrial markets might prosper as a result of the increased demand for e-commerce. Diversifying into various real estate sectors can help to spread an investor’s risk across his or her business.
Commercial real estate is a dynamic business area that offers great promise but also comes with risk. Unfortunately, a deal can easily fall through if a real estate investor has not mastered the ins and outs of a deal, particularly the legal aspects of it. However, an attorney in New York can help investors to complete their deals in a manner that protects their best interests long term.