The fact that the real estate bust has just now begun to infiltrate the commercial real estate sector has made finding affordable investment properties easier than ever before. Record numbers of foreclosures and limited buyer activity have effectively created market conditions dominated by falling prices and reduced competition. These conditions have translated into substantial opportunities for commercial investors.

We have likely seen the housing market hit rock bottom at this point and can expect a recovery in the near future. The commercial sector has proven more resilient through the early market slowdown. Companies are trying to adapt to a more competitive market by streamlining their operations, while other companies are failing because they are unable to change in light of the rapidly changing marketplace.

Commercial investors are beginning to cause a minor surge in real estate activity by taking advantage of these market conditions. Finding affordable properties takes very little effort on the part of the investor. Properties can be found through word of mouth, on the Internet, in newspapers or through real estate agents. Although commercial properties go into foreclosure less frequently than residential properties, good value can be found by taking advantage of companies streamlining their operations as well looking for companies entering into the early stages of bankruptcy or foreclosure procedures.

Picking up pre-foreclosure and foreclosed upon properties can bring valuable long-term rental income, and once the real estate climate improves, these properties can bring substantial financial gains when they are resold.

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