From stock investments to real estate investments, there are many different avenues of investing. Real estate investors, alone, have a variety of investments to choose from themselves. For people who have been interested in investing in real estate but haven’t taken their first steps, there are a variety of reasons why they should begin their real estate endeavors. It takes persistence and knowledge to make a name in commercial real estate but it can be done.

Types of Commercial Real Estate

Commercial real estate investing involves purchasing properties that are meant for commercial tenants. More specifically, investing in commercial real estate properties involves purchasing or developing properties that will be rented to other businesses. There are five different types of commercial real estate properties.

Office Spaces

Office spaces are one of the most prevalent types of commercial real estate investments. Their popularity is due to the increasingly numerous amount of businesses that exist within different areas. Office spaces are separated by three categories: Class A, Class B, and Class C. These three classes describe the condition of the office space and give a broad idea for how much capital will be needed for the rehabilitation of the property.

Retail Buildings

Retail buildings and retail spaces are leased to retail tenants. Retail spaces are most commonly located in urban areas but have recently been appearing in rural areas more frequently. There are a variety of sizes for retail spaces, ranging from 5,000 square feet to more than 350,000 square feet.

Industrial Buildings

Industrial buildings are typically leased out to manufacturing companies. These buildings provide manufacturers with the large amount of space that they need for their operations. Additionally, the buildings normally have special features that are needed by manufacturers, such as loading dock access.

Multifamily Properties

Multifamily properties are catered to groups of individuals. Rather than properties with a single unit, multifamily properties serve many families that need housing. Multifamily properties have quicker tenant turnover rates than most other commercial real estate investments.

Special Purpose Properties

There is a large number of special-purpose properties. These properties are developed for a special use and cannot be easily re-purposed. Theme parks, storage unit facilities, and car washes all classify as special-purpose commercial real estate.