A lucrative option for skilled investors
Some residential investors hesitate to invest in commercial real estate because of concerns such as lengthy closing times or large financial commitments.
However, even though it can be a bit more complicated, investing in commercial real estate can be a very lucrative endeavor.
In fact, with the right training and a solid, experienced network behind you, it’s possible to capitalize on larger payouts while enjoying a more predictable and professional purchase environment than you’ll experience with residential investing.
The main types of commercial real estate include:
Examples of multi-family real estate include:
- apartment complexes
- high-rise condominium units
- duplexes, four-plexes, etc.
Examples of retail commercial real estate include:
- strip malls
- retail centers
These properties are often situated in urban locations and range in size from 5,000 to as much as 350,000 square feet.
This class of commercial real estate is typically further broken down into three categories:
- Class A
Office space that is either renovated or newly built. This is true for single-tenant offices or even skyscrapers since it’s the building’s condition that determines the classification assigned to it.
- Class B
This class of property tends to be older buildings which are well-maintained that need minor repairs and/or updating.
These types of properties are very popular with commercial real estate investors because they require less capital and time to start giving a good return.
- Class C
This class of property is often the kind that is targeted for redevelopment purposes.
With higher vacancy rates, out of date infrastructure and poor placement these commercial properties are more capital intensive than other options.
Industrial commercial real estate is usually geared towards manufacturers, offering them spaces with height specifications and the ability to unload freight via docks for trucks and/or rail.
Examples of commercial real estate properties that can be designated as “special use” include:
- car washes
- self-storage units
- sports stadiums
- amusement parks
- mixed-use development (a mix of residential and commercial use spaces within the same complex)
To learn more about investing in commercial property in Dallas-Ft. Worth let us know. We have the experience and the knowledge to help you learn and profit from commercial real estate investing.