Types of Commercial Real Estate
If you’re looking to invest in commercial real estate, you’ve entered into a complex, diverse, and potentially lucrative industry. Commercial real estate properties have the potential to produce a lot of income over their life span and can hold a lot of advantages over real estate in the residential sector. They can help to generate immediate cash flow as well as be a long-term investment for building wealth.
That being said, there are still some inherent risks built into investing in real estate of any kind. The more you understand about the industry and the markets you’re looking to invest in, the better decisions you can make.
What Are The Different Types of Commercial Real Estate?
Office space is the most common type of commercial real estate out there. These buildings can house hundreds of employees, multiple businesses, or even single tenants. Typically there are three classes of office buildings:
· Class A – Newly built properties that are in great areas close to lots of restaurants and amenities.
· Class B – Older properties that need some capital in order to get up to speed. Need some upgrades, but not many. These are great targets for investors
· Class C – These properties need a lot of work. They either are in a bad location or have infrastructure issues.
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