The Metaverse.

Many still don’t know what it is, for many, it can seem like a new world, and technically it is.

By definition, the Metaverse is a virtual-reality space in which users can interact with a computer-generated environment and other users. It is a digital world with the same real-world components we experience daily, including business and investing.

Over the last year, especially due to COVID-19 shutting down the world, investing in the metaverse has become a trending move interested in digital real estate. Buying real estate within the metaverse can be lucrative and tricky.

Big companies have already jumped in to make investments within the metaverse, most notably Nike, which has started selling shoes within the digital world. Companies like Nike are looking for a quick return on investment from the trending wave.

Those investing in commercial real estate and property should be wary of this style. While the metaverse seems exciting, it’s hard to determine what the future holds. Like many investments in the digital space, it is risky, especially regarding commercial property.

Also, the learning curve for understanding the metaverse can be overwhelming for some.

While the metaverse offers an exciting investing method, traditional commercial real estate is still the best option for long-term investments. Commercial real estate in the “real world” allows you to be more in-depth with your research and community. Commercial real estate gives you an opportunity to create the best possible returns by creating the right businesses in the best locations. Real property gives you the advantage of holding tangible assets that gain equity over time. While the metaverse may seem like the next best option today, it may prove wise for investors to diversify and begin with purchasing real property first.

It’s easier to track the growth of a neighborhood or city than to track what directions users are heading within the metaverse. At any moment, the trajectory of the metaverse can change, making commercial real estate investing less volatile as well as more lucrative.