Main Types of Commercial Real Estate Properties

Types of Commercial Real Estate Properties:

There are many different types of commercial real estate properties. Knowing the differences between them is important for both buying and leasing decisions.

Here we will go over the three main types:

• Office space

• Industrial

• Retail

Each type has its own unique benefits and drawbacks that you should be aware of before making a decision. Let's dive in!

Office Space- Office space describes properties used for office work. They can be either a part of a larger building, or standalone. If you are leasing office space you might want to consider the following: Parking availability How easy is it to get on and off nearby highways? Is there adequate seating? Do employees have access to conference rooms and phone booths? What about a break room with microwaves or a café? Will your business need dedicated internet, printing services, copy machines, etc.?

Industrial- The industrial sector refers to the production of raw materials. Commercial real estate in this area typically consists of warehouses and distribution centers.

If you are looking for industrial space you should keep the following questions in mind: Where will product storage take place? Is there enough room for forklifts and other industrial equipment? How much outside storage is there? What does the loading and unloading process look like?

Retail- The retail sector refers to properties used by retailers. This includes shopping malls, strip malls, and free-standing retail stores. When looking for commercial real estate in this area you may want to consider: Does the property have enough parking spaces? Is it located near a busy road or highway? How easy is it to access from nearby buildings? Do restaurants surround the property? How high are sales per square foot compared with those of competitors in the area?

Commercial Real Estate Residential There's more than just offices, industrial warehouses, and retail storefronts that fall under the category of commercial real estate.

You can also buy and sell residential properties such as apartment buildings, condos, and single-family homes. Distinctive commercial real estate properties include: apartments, townhomes, co-ops, and single family homes.

If you're thinking about investing or leasing one of these be sure to ask yourself the following questions: How many units are there? What is the average monthly rent per unit? Are amenities like pools and fitness centers available on site? Is laundry service provided for each unit?

Commercial Real Estate Investment Benefits

Using an updated commercial real estate investment portfolio can secure your financial future. Here we will go over the top benefits you should know of before jumping in!

1. Appreciation many people invest in commercial property because of how much they can appreciate in value over a few years. Annual returns average around 7% for commercial real estate, while all other forms of investment return usually below 4%.

2. Stability The main advantage of investing in the world's largest economy is stability. If you were to invest in residential property there would be a much bigger risk since the market is relatively new and not as well-established.

3. Long Term investing another great benefit of the commercial real estate market is that it allows for long term investing- something that most markets do not offer today. Most stock markets require you to sell after one year, removing all benefits from compound interest and compounding. However in commercial real estate you can hold on to your properties and let them grow over time.

4. Liquidity Commercial real estate can be bought and sold in a matter of days or weeks and is often considered the most liquid form of investment. With just a few phone calls, thousands of dollars can be moved from one account to another in no time at all.