A lucrative option for skilled investors
If you’ve ever thought about investing in commercial real estate you may have had concerns - like many residential investors have - about factors such as longer closing dates, or larger purchase prices.
While commercial real estate can be a bit more complicated than residential, it’s not as hard as you might think. In fact, with the right network and training, you’d be surprised at how quickly you can learn how to invest in commercial real estate.
And once you do start to invest in commercial real estate you’ll not only gain larger payouts but you’ll experience the predictable and professional purchase environment that makes commercial investing very enjoyable.
The main types of commercial real estate include:
Examples of multi-family real estate include:
- apartment complexes
- high-rise condominium units
- duplexes, four-plexes, etc.
Examples of retail commercial real estate include:
- strip malls
- retail centers
These properties are often situated in urban locations and range in size from 5,000 to as much as 350,000 square feet.
This type of commercial real estate is typically further broken down into three categories:
- Class A
A commercial property that’s deemed a Class A investment is one that is either newly built or extensively renovated.
It doesn’t matter the type of property; single tenant offices or large complex; the condition of the property is what classifies it as a top-rated investment opportunity.
- Class B
Older, well-maintained properties that need a bit of updating or minor repairs are a favorite among commercial investors.
The smaller capital outlay for this class of investment means investors can start to get good returns, faster.
- Class C
High vacancy rates, poor placement, and infrastructure that’s out of date, Class C properties are often the target of redevelopment projects.
This class of property needs larger infusions of capital to become profitable.
Industrial commercial real estate is usually geared towards manufacturers, offering them spaces with height specifications and the ability to unload freight via docks for trucks and/or rail.
Examples of commercial real estate properties that can be designated as “special use” include:
- car washes
- self-storage units
- sports stadiums
- amusement parks
- mixed-use development (a mix of residential and commercial use spaces within the same complex)
If you’d like to know more about investing in commercial property in San Antonio we have the experience and the knowledge to help you learn and profit from commercial real estate investing.