Are you researching the opportunities associated with commercial property investments? Have you invested in any form of real estate in the past? This market can be very profitable. However, you should know the types of commercial real estate available before you invest.

Multifamily Properties

If you are looking for residential housing investments where you can earn higher incomes, multifamily properties are a good option. These buildings house at least four residential units. For example, apartment buildings, townhomes, condos, fourplexes, and co-operatives are all considered multifamily real estate.

The leasing agreements on these properties can vary significantly. You may have tenants who only want to stay for a year, but other tenants may stay for many years. However, there is likely more turnover than other types of commercial property. In addition, you should prepare to spend more on maintenance. It is a good idea to have an established property manager for these units as well due to the legal compliance requirements.

Office Buildings

When you think of office buildings, you may think of skyscrapers filled with different types of businesses. However, office space may be located in old hotels, houses, or apartment complexes. The key is the use of the building. You can have a wide variety of tenants, from attorneys and medical professionals to real estate agents and start-up companies. These spaces can also vary significantly in size, from small one-room offices to large spaces with multiple offices and conference rooms. The style of the office space can also vary significantly, from industrial to ultra-modern.

The most significant benefit of this type of commercial property is that the leases tend to be long-term, some lasting for a decade or more. Once these businesses are established, they don’t like to move unless they experience significant growth.

Retail Space

Retail spaces are used for companies that work directly with the general public. They include clothing, trinket, and other shops, but they also have restaurants. You may find multiunit properties, such as strip malls, outlets, shopping centers, and shopping malls. However, you may also find stand-alone restaurants and shops in this category.

In the case of retail space, location is paramount. Your tenants look for significant foot traffic and established businesses in the area. They do tend to be long-term lessors.

Industrial Spaces

Finally, you may invest in industrial spaces, such as warehousing, manufacturing, research and development, and assembly plants. These leases tend to be long-term as well, but your buildings may encounter zoning regulation restrictions.

These are the four main types of commercial real estate. Consider the pros and cons of each before you choose the option that is best for you.