Investing in commercial properties is an excellent way to maximize long-term profits and increase the chances of selling real estate for higher valuations. If you are interested in commercial real estate, here are the six types of properties to consider.
Multifamily Homes
As the rental market continues to climb in response to the economy and other factors, multifamily homes are becoming top investments in commercial real estate. This may include duplex and triplex homes, but apartments are topping both of these options. Another area that is seeing huge growth is manufactured housing. You would not necessarily purchase the homes, but more likely, the land on which the community is developed.
Special Purpose Properties
Special purpose projects include properties for specific purposes, such as amusement locations, religious organizations, and self-storage. These represent avenues that typically maintain income, even during most economic downturns, as people are ever-reliant on these resources.
Office Space
Office space can be found both within cities and in the suburbs, making this a good and flexible option for commercial real estate investment. Office properties are typically divided into three categories. Class A properties are considered on the luxury end of the scale, offering exceptional finishes, amenities, and more. Class B office properties appeal to a wide range of tenants and typically demand rents that are on par with surrounding properties. Class C commercial office space properties provide tenants with rents that are lower than market value with the goal being to provide functional space while maintaining a competitive edge with surrounding properties.
Industrial Commercial Real Estate
Industrial commercial real estate is a specialized sector that accommodates the needs of large companies, such as manufacturing. These properties typically are designed for shipping/receiving, production, and other types of operations.
Hotel Properties
If you are looking for commercial real estate in a location that has a positive flow of tourists or business travelers, commercial real estate in hotels can be lucrative. This may include standard hotels, as well as bed and breakfast locations, small inns, casinos, extended stay, among others.
Retail Space
Retail space includes commercial real estate properties for stores, restaurants, and bars. Some properties are connected with “big box” stores that attract consumers. Examples of retail spaces for commercial real estate investments are malls, strip malls, complexes, standalone properties, and community centers.