If you’re an investor looking to invest in commercial real estate or trying to transition from residential to commercial real estate, you have many options. You can find an area of commercial real estate that reflects your preferences and investment needs because there are diverse commercial real estate options. It’s up to you, and the scope of investment you’d like to make.
Multifamily
If you’re an investor looking to move from residential real estate to commercial, multifamily might be a good choice because your tenants are similar. This type of investing may also be a good choice because the loss of bone tenant probably won’t affect your bottom line. After all, you have other paying tenants.
Office
Investing in office space can be quite lucrative because the cap rate valuation on office space can be quite pricey when it comes to valuation. Plus, office space has similarities to multifamily real estate because you’re looking for multiple tenants. However, the cost for preparing or building out space for new tenants may be more expensive than multifamily real estate.
Retail
Retail real estate can range from small strip malls to large shopping centers. Retail real estate is space designed for businesses that sell a product or service. Even with the shift to online shopping and delivery, entertainment venues, as well as other forms of business, can still occupy retail space. You can invest in retail real estate even if it’s just a single stand-alone business.
Industrial
The rise in delivery services has made industrial spaces quite lucrative. Industrial space can be a great investment because it’s flexible and has a lower entry cost.
Hospitality
Investing in temporary stay r4esidences or entertainment venues like water parks or theme parks or also a viable investment. If you go the hotel route, you can invest in large expansive hotels or economic drop in motels. The primary focus for hospitality investing is to serve people traveling for business or pleasure.
Commercial real estate can also be of a mixed variety. Consider a strip mall that houses both office and retail space with apartments above the shopping space. This type of real estate would be mixed-use, which can also be quite lucrative.
Get the funding you need to purchase, build or rehabilitate your next commercial property with commercial real estate financing from Ideal Financial Group.