REDEV presents the second of a four-part weblog series on the basics of commercial real estate investing. Well discuss the considerations you should keep in mind when preparing to make an investment, whether it is your first or one of many. If youve missed any of the previous parts of our series, please visit our blog to get caught up.

Growth and sustainability

Great monthly or quarterly income returns are obviously a good thing. They might even be what you are really looking for. However, if you have a need for that income and are not going to be re-investing it, you should look for a commercial real estate opportunity that provides great prospects for equity growth as well.

Immediate returns and high returns are attractive, but sustainability is even more important. Look at what is going on in the local market and consider whether this is an area that is experiencing growth or decline. Will there still be plenty of business for your tenants two years from now? Five? Ten?