4 Types Of Commercial Real Estate

19 March 2021
 Categories: Real Estate, Blog

If you want to make money with real estate, you should consider investing in commercial real estate instead of investing in residential real estate. When it comes to commercial real estate, it is important to understand that there are multiple commercial real estate types. Before you decide to invest in commercial real estate, you will want to understand some of the different types of commercial real estate.

Type #1: Multifamily Properties

Multifamily properties are not considered residential real estate. Instead, they are considered commercial real estate. There are multiple types of multifamily properties you can invest in.

Duplexes, triplex, and quadruplex are popular options for new commercial real estate investors because you can live in one of the units if you want and rent out the other units. Also, these properties are essential big homes and come with a lot of the same amenities.

Then there are apartment buildings, which vary in size and investments. With an apartment building, you will need professional management to help you manage all of the units and tenants.

Type #2: Office Space

Another type of commercial buildings is offices. With offices, they come in low-, mid-, and high-rise sizes. These classifications are based on how tall the building is. Office spaces are also classified by the quality of the construction and the desirability of the location.

When buying office space, you want to make sure you invest in a building where there is a high demand for office space or invest in a building that already has many tenants that come with the building.

Type #3: Industrial Building

Another type of commercial property is industrial buildings. Industrial buildings are designed and use for specific things. For example, a building may be made for heavy manufacturing, light assembly, or warehousing goods. In many cities, industrial buildings are all grouped together, usually on the city's outer edges.

Type #4: Retail

Retail buildings are used for customer-facing stores, such as a flower shop, a corner grocery store, a gaming store, or a dry cleaner. There are all types of retail properties, from shopping centers to malls to stand-alone retail stores.

Multifamily properties, office space, industrial buildings, and retail buildings are four big categories of commercial real estate you can invest in. Within each of these four major categories, there are multiple sub-categories of properties. It is important to really research the type of commercial properties you are interested in before you start the purchasing process.