Investing in real estate is a great way to grow your money wisely. However, before going deeper into how to invest in commercial real estate property, it is important to know what property options you have. Commercial real estate properties come in different types and it is all up to you to choose the one that suits your interest and specialize in it. Commercial real estate properties have a lot of purposes but they are generally grouped into 5 categories.
Office
Office space is one of the most common commercial real estate properties. It could range from single offices to medium-sized buildings and even skyscrapers, depending on how big you want to invest. These properties are categorized into 3 classes: Class A, B, and C. Class A properties are those that are newly built or renovated and are located in excellent areas.
Class B properties are usually older buildings and need some capital to upgrade them. This type of property is the most popular for investors. Lastly, Class C properties are for redevelopment opportunities and require a major investment to improve them.
If you’re planning to invest in an office space yet aren’t sure which one to choose, a commercial real estate buyers agent can help you pick the best one to invest in.
Retail
Retail buildings are another popular option for commercial real estate investors. It can range from small shops, strip malls, and retail centers, to restaurants and even banks. These properties are typically located in urban areas where many people are. If you want a commercial property in the heart of the city, a retail building is one of the best options for you.
Industrial
Industrial buildings are made for manufacturing industries. If you prefer warehouses and manufacturing buildings, investing in industrial property is a great choice. Unlike other commercial properties, industrial buildings have certain specifications when it comes to the building height, docking availability, and other more features that are essential for industrial purposes.
Multifamily
Apartment complexes and condominium units fall under the multifamily commercial real estate property. While it is typically used by the tenants as their residence, it serves as a commercial property to the investor.
Unlike office and retail tenants, residential tenants have a shorter lease term because of their purpose. The tenant turnover rate is one big factor to be considered when investing in a multifamily property. But you could avoid problems later on with thorough research and considerations.
Special Purpose
Special-purpose commercial properties are those that are specifically designed for a certain use. Making it hard to repurpose the property for a different purpose. There are plenty of commercial properties that fall under this category – from schools, leisure and tourism properties, and a lot more.
Knowing the different commercial property options, you have can help a lot in making a wise decision when choosing a property to invest in. Find one that piques your interest to be sure that you have your whole heart into the investment you’re about to make.
