The Many Types of Commercial Real Estate
Commercial real estate refers to a certain property that is being used solely for business purposes. Commercial real estate properties are classified according to their types and these may include the following:
Office buildings or office complexes
Office properties may also vary in several factors such as the location and the type of business.¬† Office buildings located in downtown areas may differ in structure compared to office spaces found in suburban office parks. In most cases, offices occupy white-collar employees and payment for these office rentals would usually come from the rental payments of tenants. Office buildings or office complexes can be a single building occupying several groups of offices or a cluster of buildings. The value of these properties is usually based on the rental income ROI instead of measuring the area per square footage.
These properties may include duplexes, condos and apartments. These are deemed to be a more stable kind of real estate investment owing to the fact that people and families would definitely need a dwelling place regardless of any economic conditions. Multi-family residential buildings can also refer to garden apartments which are usually made up of 3 or 4 stories without elevators or any areas for surface parking. Another type of multi-family residential structures would also include midrise apartments which consist of 5 to 9 stories. These are the types of apartments usually found in urban infill areas. The third type of multi-family residential properties includes high rise apartments that consist of more than a hundred units.
If you want to invest in commercial real estate properties that require very little maintenance, industrial buildings would certainly be a good option especially for first-time investors. Add to that the advantage that industrial buildings would usually be cheaper compared to other types of commercial buildings. Examples of industrial buildings include factories, distribution centers and warehouses.
Retail properties have a lot in common with office buildings.¬† Retail properties can either be retail centers or storefronts. The success of investing in retail properties would usually depend on their visibility and location. Add to that the stability of the business being housed in each retail property.
Hotels also belong to commercial real estate properties.¬† Full service hotels can be found in central business districts and are usually occupied by top business owners.¬† Some hotels are also classified as limited service hotels which do not offer any on-site restaurants, room services or any space for convention and any other group functions. Another type of hotel is the extended stay hotel which provides small kitchens and larger rooms for people who are planning to stay for several days or weeks.
If you are planning to invest on any commercial real estate properties, you must take into consideration the amount of time and money that you want to invest. This way, you will know exactly which type of real estate building to have for your first-time investment
This was a guest post written by Inez Vaughn.¬† Her website, howmuchisit.org is a gigantic resource that can help you find out what just about anything has.¬† With over 2,500 cost helping guides today, you can gain access to prices on professional services, surgeries, pets and more!