Top Commercial Property Investments

1. Multi-Family

Apartment buildings and other types of multi-family homes are some of the most highly preferred commercial property investments for a reason. Young people often can’t afford to own, and seniors don’t want to maintain a large home. But while multi-family homes can be a safe investment, they are far from a passive income. High-end renters often demand a high level of maintenance and service, while locations in working-class neighborhoods might struggle to collect rent.

2. Office Buildings

Office buildings come in many shapes and sizes, from single-tenant facilities to skyscrapers with dozens of occupants. Office buildings can see their commercial property value ebb and flow with the economy. In good times, rents can reach astronomical heights, but the building’s value can drop with the economy.

3. Co-working space

Co-working spaces are an increasingly popular option, especially in large metro areas. These buildings have been configured to mimic traditional offices. You’ll see conference rooms, assigned cubicles, desk spaces, even small offices. But rather than one company taking over the entire building, you have individuals paying a monthly fee to use the space. These spaces are popular with small businesses, remote workers, and freelancers. This type of office space typically would garner some of the highest price per square foot!

4. Retail

In a world where more and more commerce is being handled online, it’s wise to do your due diligence before investing in a retail shopping center. We’ve all seen the stories of big iconic malls closing, or large stores closing leaving many malls who are still open hanging by a thread. However, there is still room for brick and mortar retail locations in our modern economy.

5. Mixed-Use

Mixed-use buildings are very common (especially in large cities) and can help you combine multiple types of commercial properties into one building. An example of a mixed-use property would be a building with a restaurant on the ground floor, office space on the 2nd floor, and then possibly some residential space above that.

6. Industrial Real Estate

Industrial real estate can refer to many different types of buildings, from warehouses to manufacturing facilities, even research facilities. They can be great investments with the right tenants, possibly even allowing you to secure a triple net lease.

So as you can see, there are multiple types of commercial real estate to invest in! And each type of property will come with its own set of risks and rewards. Understanding more about the type of property you plan to invest in, along with knowing your goals and needs, will go a long way towards making sure you make a wise decision.