Kanat Sultanbekov New York – An Insight into Commercial Construction Project Investments and Its Three Common Risks
The commercial real estate industry in the USA is expanding and proliferating because the market is stable, and the rents are rising, leading to more opportunities for growth. The economy is improving, so there is more demand for office space, so investing in commercial real estate is a rational and prudent choice.
Kanat Sultanbekov New York-rising rents in the commercial real estate industry
Kanat Sultanbekov is an expert in the field of commercial construction in New York. He says the industry is profitable today because the high demand for office premises and spaces is high. This leads to an increase in rents and commercial real estate properties.
The commercial real estate industry enjoys better stability than the stock market
Investing in commercial real estate is safer as it has lesser risks. According to Kanat Sultanbekov New York, the market is more stable than the stock market, which is quite volatile and subject to frequent highs and lows. This makes it appealing to several investors looking for security options for investments with fewer risks than the stock market. Investors can earn stable profits and enjoy the benefits of rising rents and demand for office space to further invest in the industry if they wish to.
Common risks in the commercial construction industry
When it comes to risks in the commercial construction industry, safety is a crucial concern and is considered to be the most hazardous if not managed carefully. Some of the key risks in this area are workers falling from heights, or be exposed to the dangers of electrocution by live electric wires, or being stuck in equipment or crushed by heavy machinery. Worker fatalities occur if the proper safety or compliance standards are not effectively maintained on the site.
Financial risks and their adverse impact
Financial risks are common and tend to affect the construction company’s profits; here, no organization would like to step back when it comes to financing a project. For instance, repairs and replacements place a substantial financial risk on the project. Some are external, like the economic influence on the raw material costs, high-interest rates, competition from peer companies, equipment theft, etc.
Management risks are common in the construction industry
If the communication between the project manager, the team, and the clients is poor or unprofessional, the whole project suffers. When the expectations of the project deliverables are not met, issues crop up, leading to many delays. The other management risks include setting out many projects that result in delays or setting out unrealistic deadlines. If there are communication issues with subcontractors, this too hampers the well-being and the quality of the entire project.
According to Kanat Sultanbekov New York, project managers must ensure that their commercial construction projects have good communication and collaboration processes to avoid wasting time and money. The whole team should be on the same page, and the desired standards for safety and quality should be met at all times. Any confusion should be clarified immediately so there is no hindrance and the construction is completed per schedule.