Commercial property is a real estate investment that you make to earn rental income. It can be used as an office, retail, apartment, or any other type of business. Let’s discuss the types of commercial property with Nima Bendavood.
The Most Common Types of Commercial Properties Are:
Office Buildings
These are usually located in cities and towns where there are many people to serve them. They have high demand since they provide numerous services such as workspaces and meeting rooms. Office buildings also provide parking spaces for their customers, which is another reason why they have high demand. However, in recent years and especially due to covid, the demand for office has decreased to historic levels due to option of remote working.
Apartments
Nima Bendavood: Apartment buildings are one of the most in demand types of commercial properties today. As more people move to the urban and large cities, the demand for apartments has increased which has pushed rental prices to historic levels. People will always need a place to call home, so It’s expected that apartment will be a very safe investment for the foreseeable future.
Retail Centers:
Retail centers are one of the most common types of commercial property. They are usually located in shopping malls, strip centers, and mixed-use developments. Retail centers typically include a variety of stores and services under one roof and offer tenants access to parking, loading docks, security cameras, and other amenities that they would not have otherwise.
Hotels
The hospitality/hotel industry is one of the most ever-changing types of commercial real estate. Hotels are usually more susceptible to market changes because when the economy goes down people have less money to travel and when the market is up people have higher wages and can afford to travel. There are two main groups of hotel customers which would be either for vacation or for corporate guests who are office employees needing to travel to fulfill their job duties.
How Do I Invest In Commercial Property?
The best way to invest in commercial property is by buying a good quality, well-located building. The first step is to determine the type of commercial property that you want and then find out what it would cost to buy it. If the price seems reasonable, then you can proceed with your purchase.
You should know about the market for your product or service before you start looking for an office building, retail shop, or warehouse space.
Wrapping-Up:
Nima Bendavood says commercial property is a good investment option because it offers steady and consistent returns. It can be used to generate income, but it also has the potential of generating capital gains if you sell it at a higher price than when you bought it. The main advantage of commercial real estate investing is that there is less risk involved as such properties can generate fairly steady cash flow.