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The U.S. commercial real estate market was valued at $25.28 trillion in 2024. Commercial real estate investing is unquestionably appealing to investors who are looking for relatively stable and potentially lucrative options.

However, concerns about complex regulations and high capital requirements keep many people from exploring this opportunity. Are the same concerns giving you pause? If you’ve been wondering how to get into commercial real estate, here’s everything you need to know.

Why Consider Commercial Real Estate for Your Investment Portfolio?

Commercial real estate has distinct advantages when compared to other asset classes. The benefits of investing in commercial real estate include the following:

• Higher Potential Returns: Commercial properties typically generate higher income compared to residential real estate, and the leases are often long-term.
• Hedge Against Inflation: Because rent and property values tend to rise with inflation, your investment is more likely to retain its value.
• Stability and Diversification: Commercial real estate tends to be less volatile than intangible assets and can help spread risk.
• Social and Environmental Impact: Investing in commercial real estate allows you to make a positive impact on society.
• Potential Tax Benefits: In the right circumstances, commercial real estate investments can provide tax benefits, including income tax depreciation deductions, mortgage interest deductions, and accelerated depreciation.

The team at OpenPath Investments is committed to helping investment partners like you invest in socially responsible and environmentally sustainable projects. We believe that commercial real estate investing can be both lucrative and positive for society as a whole.

How Much Do You Need to Start Investing in Commercial Real Estate?

This is one of the burning questions that nearly every prospective commercial investor asks: “How much do I need to invest in commercial real estate?”

One common misconception about commercial real estate investing is that it requires millions of dollars up front. While it’s true that commercial properties often have higher price tags than residential real estate, there are also flexible options with lower barriers to entry.

The amount you need depends on the property type and market. For example, smaller commercial spaces may require an investment of $100,000 or less, while larger developments cost millions. You should also account for ongoing costs:

• Property Management Fees: To handle tenant issues and day-to-day operations
• Maintenance and Repairs: For upkeep and unexpected issues
• Insurance and Taxes: To protect your investment and comply with local regulations

If you don’t have enough capital to go it alone, there are other ways to invest in commercial real estate. You can apply for a commercial mortgage or buy shares in a real estate investment trust (REIT). Alternatively, you can partner with other investors and pool your assets. These strategies allow you to participate in the commercial real estate market without bearing the full financial burden.

Proven Strategies for Successful Commercial Real Estate Investing

Are you ready to invest in commercial real estate? Here are some impactful strategies to jump-start your efforts.

Work with Experts

Success in commercial real estate investing requires specialized knowledge. Consider partnering with the seasoned professionals at OpenPath Investments for access to up-to-date market insights and due diligence expertise.

We also connect our clients with high-performing opportunities while maintaining our focus on impact-driven projects that align with their financial and ethical goals.

OpenPath Investments wants to help our clients leave lasting legacies that include support for affordable housing opportunities and environmental conservation. This holistic approach helps our investors contribute to projects they can be proud of.

Watch Economic Trends

While commercial properties tend to be more resilient against economic downturns, they are not immune to rising interest rates and inflation. With that in mind, it’s vital to stay informed about these trends so you can time your investments strategically and choose properties likely to appreciate in value.

As an OpenPath Investments client, you’ll receive timely insights and guidance to support your investment decisions. We strive to keep your portfolio within acceptable risk tolerances while capitalizing on emerging opportunities.

Choose Property Types Carefully

Each category of commercial property comes with its own risk and return profile. Here are the four main categories:

• Core: Low-risk, stabilized properties with steady cash flow
• Core-Plus: Slightly higher risk, but may offer improved returns through minor enhancements
• Value-Added: Requires renovation or operational improvements, but have a high potential upside
• Opportunistic: High-risk, high-reward projects like distressed assets or new developments

OpenPath Investments believes in diversification to mitigate risks while maximizing potential returns. We specialize in accessing markets with proven performance, helping you match your investment goals with the right opportunities.

Diversify Your Portfolio

Industrial properties might perform well during economic shifts, while multifamily housing can deliver consistent rental income. Diversifying across property types and markets reduces risk, so it’s best to create a well-rounded portfolio. If one market experiences a decline, the other property types and markets should help stabilize your portfolio and mitigate total losses.

Adopt a Long-Term Mindset

While fix-and-flip residential investments have the potential for relatively quick returns, commercial real estate investing is a long game. Make sure you are committed to your strategy and willing to weather market fluctuations.

There aren’t any one-size-fits-all commercial investment strategies. It’s important to identify the approaches that best align with your risk tolerance and long-term investment goals. That’s where an experienced partner like OpenPath Investments can help.

Build Wealth with Commercial Real Estate

Commercial real estate investing is an incredible opportunity to grow your wealth, stabilize your portfolio, and create a lasting impact. Now that you know how to invest in commercial real estate, it’s time to find the right partner to support your journey.

OpenPath Investments is that partner. With a focus on socially responsible and environmentally sustainable projects, we help you achieve your financial goals while contributing to meaningful change.

Ready to take the next step? Partner with OpenPath to accelerate your commercial real estate investing journey. Contact our team to schedule a consultation.