Investment Opportunities In Commercial Real Estate

When many people go online looking for a new investment, it is often overlooked commercial real estate! Why? Simply because of lack of information. Now, we’re going to see what commercial real estate is, types of properties and leases. All you could possible know to make an intelligent and informed decision.

When you decided to visit this website, you were probably aware that commercial real estate refers to areas with a single purpose, which is generating profit! In this case it can from two revenues, which are capital gain or rents.

In this type of real estate, there are only five categories:

  1. Retail. Basically includes shops, malls and retail stores
  2. Industrial. Ranges from garages, distribution centers, industrial properties, factories or warehouses
  3. Office. Well, this includes offices buildings and service based offices
  4. Healthcare. From nursing homes to hospitals
  5. Leisure. Coffee shops, hotels, restaurants, sports buildings, etc.

Digging into a more specific topic, types of leases. There are mainly four types of leases, but each one with a different kind of responsibility for the tenant and the landlord. Firstly, a gross lease. Here the landlord takes care property’s taxes, insurance and maintenance, while the tenant only pays rent. A single net lease obligates the tenant to care of property taxes, with rent included of course. A double-net lease, in addition to rent and property taxes, requires that the tenant also pays for insurance. Finally, a triple-net lease, in addition to everything said before, it also includes that the maintenance is paid by the tenant.

Starting out your venture on your own in this commercial real estate might be daunting. But if you have the starting capital to do it, all you need to do is getting yourself extensively informed about legal, regulatory and financial sides of this investment. For more, you can click here.

When deciding about what type of property to invest in, it’s highly recommend that you go online and visit this website for more detailed information and helpful guidance.

Check out our other blogs for more tips and tricks!