2020 has posed an interesting year for all marketplaces, including real estate. Commercial real estate has taken a hard hit as retailers and businesses shift from a focus on utilizing retail and office space to greater use of online sales and remote meetings. On the flip side, residential real estate is booming.
A potential business opportunity?
Those who are interested in purchasing either commercial or residential real estate can benefit from a basic understanding of the current highs and lows. A smart strategy could result in serious gains in the future.
There is hope the commercial market will bounce back once the economy rebounds. As a result, some enterprising entrepreneurs may be interested in gathering property within this market to be prepared for increased demand in the future. Although demand may not be as high as it once was, the likelihood that businesses will need some office space in the future remains.
What should investors be cautious about if taking advantage of this opportunity?
Whether looking at a commercial or residential real estate transaction, it is generally a good idea to be wary of boilerplate, fill-in-the blank real estate contracts. Arguably, this is true now more than ever. 2020 has brought unique circumstances that impact real estate into the spotlight. Some real estate professionals are adding provisions within contracts to help better navigate these unique circumstances. As a result, it is a good idea to know exactly how the provisions within the proposed real estate transaction contract will impact your purchase and future rights.