Places to Invest in Commercial Real Estate

1. Places to Invest in Commercial Real Estate Real estate is a well-known investment type that is used to develop income for generations, protect against inflation, and be recession-resistant. Commercial real estate has generally proved to be a strong and fairly reliable investment tool for investors looking to maintain their money while developing their portfolios. We recommend that investors keep watch of the following seven data points while looking for secondary and suburban development MSAs: ●Population Increase (Net Migration) The market for real estate is driven by a city’s population increase. As more individuals migrate to certain locations, there will be a need for more working areas. We’ve discovered certain millennial tendencies (ages 18 to 34) as a reliable indicator of the future desire for corporate office spaces. ●Job Creation Where are businesses and employment expanding? Will multinational corporations reconsider transferring a portion of their workforce from high-rent, high-wage, high-tax jurisdictions to ones that provide better value in the post-COVID era? We take unemployment and average wage into account while calculating this indicator. ●Wage Increases Wages have been stagnating for years, and the pandemic has done nothing to change that. Unemployment rates have also increased significantly, making growing costs even more challenging. When evaluating the desirability of a possible commercial real estate investment market, wage growth is an essential issue to consider. ●Education of High Quality One of the main drivers behind where people decide to work, live, and play is access to high-quality education. Calculate the average college entrance grade of all public schools in the metro area and compare it to the scores of all other rated metro areas to evaluate the presence of quality education.

2. ●Access to Affordable Housing The hurdle to investing in coastal cities is their high cost of housing. Mainly, home costs relative to other cities are what attract real estate investors. ●Rents are increasing Rent increases mean renters earn more money. This is, of course, a clear indicator of a desirable location for commercial real estate investors. ●Replacement Cost Discount A sale value below replacement cost is widely regarded as one possible sign of buyer- friendly pricing. To assess the savings a given price offers, we feel that a uniform technique for evaluating replacement costs is a crucial starting point. Furthermore, analyzing the connection between existing rents and replacement rents (the rent required to justify new development) is a useful technique for estimating future rent growth possibilities. Office investments in prominent business areas of U.S. gateway markets have historically drawn various real estate investors. But, demand for office investment prospects in non-gateway areas, especially secondary markets, has shifted as a result of current demographic shifts led by the millennial population. The KCT Group of Companies, led by Varun Thapar, can be of great assistance in locating a property that exactly suits your interest and preference. Address: Thapar House, 163 S.P. Mukherjee Road Kolkata – 700026, India Telephone: +91 33 4005 7000 Fax: +91 33 4005 7001