Commercial real estate investors tapping into crowdfunding

On Behalf of | Jun 13, 2019 | Commercial Real Estate

The sector of non-residential properties remains among the most lucrative and largest asset classes in the United States. In fact, the market for commercial real estate in New York and elsewhere is valued at around $6 trillion. However, just a small group of people were able to access these properties in the past. Nowadays, more people can take advantage of them thanks to crowdfunding.

Crowdfunding is where individual investors may make real estate purchases through an online marketplace. The types of buildings they can purchase through crowdfunding include warehouses, office towers, hotels, apartment buildings for multiple families and malls. Because of these types of marketplaces, typical investors no longer have to use publicly traded exchanges to do investing. Tens of thousands of accredited investors have already used the popular platform CrowdStreet to invest in real estate.

Investors in general are increasingly turning to commercial real estate because they are afraid that bonds and stocks are not secure investments in today’s economic and political climates. As a result, they are pursuing real estate to diversify their portfolios. In addition, multifamily rents and office rents are reaching record highs in the United States.

Of course, investors who do not have large amounts of experience with purchasing commercial real estate may feel intimidated by the process. However, an attorney can walk these real estate investors through the legal aspects of their deals. The attorney’s ultimate goal is to make sure that the client’s best interests and rights are protected during all states of these types of transactions in New York.