Types Of Commercial Real Estate Investing

**Waterfront Specialist** · 09-01-2010, 03:28 AM

When it comes to commercial real estate investing that are different types of property one can invest in. It is important to understand the advantages as well as the disadvantages to the different commercial investment types in order to match your own individual goals and interests.

Here are some of the major types of commercial real estate investments you can consider investing in.

• Apartment Buildings These can be great investments. They are readily available, banks are willing to offer loans on them and they can be an excellent source of cash flow. The disadvantage of course is that property management can be time consuming.
• Mobile Home Parks These can potentially be profitable as there is not a lot of development that needs to be done. If the vacancy rate is high or in an undesirable area the park may not be a good investment.
• Retail Centers are another excellent type of commercial real estate investing. One advantage is that they are generally leased out on a long-term basis with triple net terms in which tenants pay for property expenses such as real estate taxes, property insurance as well as maintenance and repairs.
• Office Buildings Long-term and triple net leases are also used with these types of commercial real estate. The key is to find office buildings in desirable areas with low vacancy rates.
• Industrial, Manufacturing and Warehouses These are usually solid investments as there is usually strong demand for industrial and manufacturing space.
• Hotels and Resorts This type of commercial real estate investment is not really suitable for beginning investors, but those who are experienced can find these investments to be quite profitable.
• Health Care Facilities This includes nursing homes and assisted living centers. They can be be excellent investments because there is increasing demand for these services and financing for these types of properties is readily available.
• Land Development This can be an exciting and potentially lucrative investment, when you take land without property on it and improve it. It can also be risky and does require experience to do well with land development.

**hofster** · 09-24-2010, 02:11 AM

Often when people invest in raw land they hope that that land will one day be re-zoned to commercially-zoned land in the future, which would turn that meager investment into one that is worth hundreds of thousands of dollars or more per acre. In reality, the chances of this actually happening are low. In most cases, people how invest in raw, undeveloped land either lose money or get little return from their investment.

**Jonathan Radford** · 09-29-2010, 01:57 PM

Originally Posted by hofster

Often when people invest in raw land they hope that that land will one day be re-zoned to commercially-zoned land in the future, which would turn that meager investment into one that is worth hundreds of thousands of dollars or more per acre. In reality, the chances of this actually happening are low. In most cases, people how invest in raw, undeveloped land either lose money or get little return from their investment.

That's often true but it depends on where the land is and what the time-frame for the investment is. Land near a major, fast-growing city will usually work out, especially over the medium or long term.

**mjtent** · 10-01-2010, 09:41 PM

In some countries the distance to the high-way is also included in consideration to the price of the property. The properties near the high-way have much higher prices.