No matter which type of real estate market you plan on investing, whether it be residential or commercial real estate, one of the most important factors you have to consider is location.
Unless you understand just how significant the effect of location is on real estate prices, you’ll end up gambling each time you make a decision, which is never a wise way to approach investments. On the other hand, keeping in mind the importance of location will allow you to make sound decisions when investing in real estate since you can judge more subjectively the difference in prices in different locations, as well as better predict the market trend for each location you are considering. After all, just because commercial real estate is improving in some locations this year does not mean that it is a better option than the residential real estate market in certain areas.
So make sure that you do your research for the specific area you are eyeing before even narrowing your choices down to specific properties and investing your money in it.