What Are The Different Types Of Commercial Real Estate

Evaluating the Different Types of Commercial Real Estate Properties and What They Are for

Commercial real estate is on the rise, and it’s becoming more popular by the hour. Learning about the different types of commercial real estate properties currently on the market should be one of your first and most essential tasks as a beginning investor.

The Five Types of Commercial Real Estate Properties

1. The multi-family sector covers family homes like townhouses, apartment buildings, condos and co-ops. The best are considered the garden-style buildings, which are one, two or three story apartment developments that can be built both in rural and urban areas.
2. Hotels are also highly popular although somewhat more costly from the investor’s point of view. A hotel offers accommodation, meals and relaxation services for tourists and travelers, and despite the investment, the returns are well worth it.
3. Industrial buildings such as factories, light assembly developments, bulk warehouses and heavy manufacturing plants can also be a great asset for long term returns, being often grouped in industrial parks and away from residential complexes.
4. Office buildings are some of the most popular commercial real estate properties, including urban and suburban buildings. These buildings are often large and prestigious, providing functional space for small and large companies to operate their services.
5. Finally, the retail sector is one of the most complicated, featuring both large and small buildings designed for anything from small grocery stores to the biggest shopping centers. Regional malls, community centers and strip centers fall under this category.

Which One Would Be the Best for You?

If you want to consider commercial real estate, the five primary types of buildings presented above are the most practical ones that you can consider buying for profit. Depending on the size, location and scope of the building, as well as the specifics of its construction and amenities, investments might vary greatly, and you will have to figure out precisely which one is best suited to your investment goals.