Pivoting to Commercial Real Estate: A New Direction for Buyers
As Ross Geller famously yelled, “pivot!” in the beloved sitcom Friends, prospective homebuyers today find themselves at a crossroads in the real estate market. With mortgage interest rates hovering around 7%, the landscape for residential buyers is fraught with challenges, including limited housing inventory and escalating home prices. However, one celebrity real estate expert is urging buyers to consider a different path: commercial real estate.
The Case for Commercial Real Estate
Jade Shenker, a licensed real estate agent with the SERHANT. firm and a prominent figure in Netflix’s new reality show, Owning Manhattan, believes that commercial real estate presents a more lucrative investment opportunity. “Right now, it’s like a giant Black Friday sale,” Shenker told Fox News Digital. “It’s a buyer’s market. Things are really trading at almost 40%, 50% market value.”
Shenker emphasizes the adaptability of commercial properties, stating, “The economy’s always adapting. There’s never been a 20-year period where something stays the same.” This adaptability allows investors to transform buildings for various uses, making commercial real estate a versatile option. Unlike residential properties, which are often limited to single-family homes or multifamily units, commercial real estate encompasses a broader range of possibilities, including office spaces, retail locations, and mixed-use developments.
Understanding Commercial Real Estate
Commercial real estate typically refers to properties with more than four units, which can include multifamily homes or large residential rental properties. It also encompasses real estate used for business activities. This sector has been gaining traction among investors, and experts like Bruce Mosler, Chairman of Cushman & Wakefield Global Brokerage, have noted a positive outlook for commercial real estate. “We’re actually seeing demand increase this year,” Mosler stated, acknowledging the ongoing challenges but highlighting the sustained interest in quality commercial spaces.
A New Approach to Marketing
Shenker, recognized as a Top 30 Under 30 real estate industry disruptor, is on a mission to revitalize the perception of commercial real estate. She aims to make it “sexy” again, particularly in light of current market conditions. With nearly a quarter billion dollars in active listings under her management, Shenker has successfully overseen over $650 million in luxury assets, focusing on innovative strategies for restructuring and re-marketing properties.
One of her standout marketing techniques involves the use of music videos to showcase listings. “Technology and marketing change over time,” she explained. “For some reason, commercial real estate hasn’t adapted to the new marketing techniques.” By leveraging high-quality video production, Shenker aims to present properties in a more engaging and visually appealing manner, moving beyond the traditional, uninspired presentations that often dominate the market.
The American Dream Reimagined
Despite the current sentiment that only 14% of consumers believe it’s a good time to buy a home, Shenker remains optimistic about the enduring appeal of real estate ownership. “I think this is everyone’s dream,” she asserted. “I don’t think it’s just the American dream. America is a melting pot. You can come here, and, no matter where you’re from, if you have a dream, it’s possible for you.”
Shenker believes that owning a piece of real estate—especially in a vibrant market like New York City—is an aspiration worth pursuing. “What is sexier than owning a piece of the most amazing city in the world?” she asked, encapsulating the allure of real estate investment.
Conclusion: A New Era for Buyers
As the real estate market continues to evolve, prospective buyers are encouraged to consider the potential of commercial real estate as a viable investment option. With experts like Jade Shenker leading the charge and redefining how properties are marketed, the commercial sector may offer opportunities that are not only financially rewarding but also creatively fulfilling.
For those interested in exploring this dynamic world, Netflix’s Owning Manhattan provides an inside look at Shenker’s innovative approach alongside real estate legend Ryan Serhant. As the market shifts, it may be time for buyers to pivot—just like Ross Geller—and embrace the possibilities that commercial real estate has to offer.