Commercial real estate is a large market with a lot of diverse investing opportunities. Learning about the types of real estate and studying the backgrounds, trends and outlook is the first step you should take when deciding how you want to invest. Here are the most common types of commercial real estate:
When people think commercial real estate, they think office. Most office real estate is either urban or suburban. But even office real estate is divided into three further classes (A, B, C), with Class A being the most prestigious (think high-rise downtown towers). Class B real estate is more wide-range clientele and Class C usually brings the lowest rents. Medical office buildings are another sub category that has a lot of income potential.
The best reason to invest in office real estate is stability. Clients are more likely to sign longer-term leases, however that can increase the time to find a client in vacant buildings.
Land is a finite thing. Investing in land can be risky, however the rewards are tremendous. While the capital is also more intense than other types of commercial real estate, if the land has use, and the right developers are involved, you can see huge returns on your investment.
Retail is much more than shopping centers and strip malls. Restaurants are a part of the retail investing sector. Single tenant retail buildings are also a great investment, and are usually taken by chains and big box stores that are proven, stable and able to do well in most economic climates. The more visible the location, the better retail is for your investment. You want retail in high traffic areas.
Industrial commercial real estate, much like offices, are divided into different categories depending on what the land is zoned for. They can be low-rise single units or full industrial parks. Any manufacturing, storage, assembly, warehouses or a mix of all of the above classify as industrial.
You might think of apartments or condos as non-commercial but they are a great investment opportunity. Anything that is not a single-family home is part of the commercial realm. High-rise apartments, downtown lofts, college specific housing, and hotels are all great for those looking to build passive income.
Not sure what kind of commercial property is right for your investment? The pros at Landmark Commercial Real Estate know the Jacksonville market and can help you find the best investment based on your goals. For more information on commercial real estate investing contact us. For more real estate news and tips like us on Facebook.