Commercial Real Estate Properties to add to your Portfolio
If you're looking to grow a commercial real estate portfolio that you can be proud of, you first need to understand the various sectors, aka properties that reside within this area of the real estate market. Understanding these properties provides you with much more than just an inventory list of the options you have but also a way for you to choose your investments wisely. Educating yourself on these areas of the commercial real estate market can mean the difference between losing and making a profit on your investment. Therefore, the following includes a detailed list of most of the properties that you must know to grow your commercial real estate portfolio.
Commercial Real Estate Properties : Offices
When it comes to office real estate, there are two types of office categories to know about. The first one includes the offices that you would find within a skyscraper. The second includes those located within suburban areas. These are usually smaller and located within office parks. Most offices will be created to suit a particular business type, and thus you must be aware of those details before investments are made. In addition, office spaces are categories into Class A, Class B, and Class C.
Class A Offices
When you deal with a class A office space, you are investing in the most premiere of office types. These spaces have state of the art amenities, high-quality building materials, and above-average rent. Many of these offices will be found within large high rise buildings.
Class B Offices
In the class B office choice, you are dealing with office spaces that are still competitive but not at the level of a class A property. Many of these will also range from good to fair conditions, which will, in turn, affect the rent status of it.
In the class c category, you are looking at spaces that are still very much on demand but within less than favorable locations. In addition, these spaces provide more of a functional use that aesthetics to the renter.
Commercial Real Estate Properties: Retail Locations
You see them every one, and there's a pretty good chance you've visited these locations at one point or another. Retail locations are a great addition to your real estate portfolio as they are in high demand. Many times, in fact, you will see larger franchise owners pick up these locations and remain there for years. In terms of types of retail locations, you are going to be dealing with either multi-tenanted or single-use. If you don't know too much about retail locations, then it is best to stick with a single-use. The reason behind this is due to the often complex manner in which retail locations are classified. For instance, you have strip malls, community centers, and mall stores, to name a few.
If you're really looking to go into a more simple yet larger sector of the commercial real estate market, then the industrial sector is for you. These are usually on the outskirts of the city. Due to their size, many of them will be grouped together rather than separated. When looking at industrial properties, you will run into having to choose one of the four types. These include heavy manufacturing, bulk warehouse, light assembly, and flex industrial. In a heavy manufacturing property, you will find a space that is customized specifically for the client. Bulk warehouse are usually simple large areas that are used for distribution. Light assembly properties are even simpler than bulk warehouses as they can be used for simple assembly or storage. Lastly are flex industrial properties. These contain a mix of both traditional office spaces and assembly.
Contrary to popular belief, commercial real estate properties don't just deal with businesses. Multifamily properties would include apartment complexes, condos, and townhomes. Similar to office spaces, these properties will also fall under Class A, B, and C. Class A involves high rise buildings with multiple amenities such as doormen and private elevators. Class B and C are the usual family residential areas, such as apartments. It should be noted that there is also a special category for the multifamily sector. These include buildings that house a specific type of people, such as student dorms, senior homes, and low-income housing.
Commercial Real Estate Properties: Hotel Commercial Buildings
One of the most overlooked commercial real estate properties includes hotels. Hotel businesses can either be owned independently or by a major chain such as Holiday Inn. One of the best things about these types of real estate properties includes the vast amount of options you have. You can choose to concentrate on smaller hotels, known as limited-service properties, or go all-in with a resort with large amounts of land and multiple buildings.