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Shawn Yari Offers 9 Tips on Commercial Real Estate Investing
Successful commercial real estate investors have a slew of techniques up their sleeves.

Successful commercial real estate investors have a slew of techniques up their sleeves. For emerging CRE professionals, the industry can be a lucrative and a diversified source of income. But new investors entering the commercial field need to understand its diverse layout as they learn ways in which to grow their assets in both local and national properties.
Shawn Yari, along with his brother Steven Yari, secured investments as the co-founders and managing partners of Stockdale Capital Partners, gaining insights that have helped his company become a success over the years. We sat down with Shawn Yari as he explained nine essential tips that new CRE professionals should know:
1. Research Your Market
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Firstly, Shawn Yari believes the more you know, the more information can be used to benefit the consumer, the neighborhood, and your profit. Yaris explains, “The foundations of CRE remain steadfast; always research your market before you jump into the sector.” He continues to say that market researchers need to look for rental demographics and statistics, competition, vacancies, legal processes and research to help identify the needs in each market. “Of course, this helps create stronger investments and can significantly increase your ROI,” says Shawn.
2. Practice Patience
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Patience is definitely a virtue, especially within real estate. “Acquisitions can take several months to complete, but completing your due diligence is essential,” emphasizes Yari. Within the investing process comes the search for tenants to occupy these commercial spaces, but the silver lining is that commercial leases last longer than residential ones. As a result, patience is a key to swimming with the sharks in this field.
3. Demographics are Key
One crucial piece of advice that has helped Shawn Yari become successful is the understanding of target demographics for each commercial property you purchase.
“Continuing on the idea of understanding your market means also knowing the people who will use and occupy your buildings,” Yari says. Identifying trends have helped Stockdale Capital Partners CRE leaders figure out where to develop and how it will affect the local community and people.
“It’s always helpful to connect with your local governmental and environmental agencies, SRS members and even civil engineers to get a wider perspective on different demographic areas.”
4. Avoid Renting to Failing Business Models
The Internet has shaken up everyday business models. “So many retail stores have closed due to online shopping. One thing you have to remember is that many business models are now using new innovations, so it might be best to avoid renting space to several business that use antiquated models,” says Shawn Yari.
Shawn also suggests securing your insurance coverage if businesses default on their leases. “In our industry, you might want to start looking at investing in office buildings with tech companies for tenants since their businesses are more stable.”
5. Identify your Property’s Risk
Another thing Yari mentions new CRE professionals should look for is the difference in property risk. Assessing this means taking the time to factor in anything that could go wrong with the investment and, as he mentions above, making sure you have the means to pay insurance on these properties, especially since each property type is different.
6. Consider Impact on Demand
“Investing in retail means adjusting your short-term and long-term expectations,” says Shawn. Since he holds a diverse commercial real estate portfolio with Stockdale Capital Partners, Yari believes assessing the impacts of new trends like coworking spaces, e-commerce trends on consumers and tenants needs, and healthy work environments can provide insight into the impact of demand for commercial spaces such as offices and retail districts.
7. Factor in City Approval Timeframes
City permits are also a crucial step to factor-in during the investment and construction process. As Shawn Yari knows, it can take several months — sometimes even a few years — to secure a building permit. Before investing in commercial properties, Yari says CRE investors need to discuss timeframes with city council officials and other city organizations so you can determine when you need approvals for planning and zoning.
8. Discover how to Secure Capital
As an investor with over 20 years of experience, Shawn Yari and his brother, Steven, have built an investment portfolio with over $1 billion in assets. He maintains that while some CRE pros often worry about high valuations, newcomers need to focus on finding a steady source of investment capital. The real estate market is now filled with new capital, so once you secure money or a good deal you can start to build credibility.
9. Educate Yourself on CRE Debt Investment
Shawn also mentions that investors should keep an eye out for investment opportunities with less risk and greater ROI potential. Often, CRE debt investment have returns of 8-10 percent. Yari believes it can create a stable foundation even during a market correction, but says “ its overlooked for some professionals, but CRE debt investment could be a strategic investment.”
As one last piece of advice, Shawn Yari says to dedicate your role to action. Staying active and involved in all aspects of the investment process will ensure that your properties are appealing to tenants and consumers while creating long-lasting economic value for the community.
“Trends will always change, so it’s crucial to stay on top of changing community demands — even on a global scale — so you can maintain your properties. It’s essential for your investments to thrive.”