Business Description

COMMERCIAL REAL ESTATE

Real estate that has the potential to make money through capital gains or rental revenue is the simplest way to define commercial real estate.

Why do you need to know more about Commercial Real Estate?

Your investment portfolio can benefit from some diversification through commercial real estate. All investments involve risk, but compared to other assets, some types of commercial real estate can minimize risk.

Tenants of commercial real estate frequently sign leases that are three to ten years long which give landlords some degree of reliability. Additionally, certain commercial real estate investments can weather economic downturns when their tenants include hospitals, government agencies, and other institutions that will remain in operation when the general economy is shaky. Additionally, the consistent cash flow from monthly rent payments offers security.

Types of Commercial Real Estate:

Identifying the most basic forms of commercial assets is essential to understanding the business sector. Let’s learn more about commercial real estate types.

1. Multi-family Real Estate

Housing with many units, ideally contained within a single physical structure, is known as multi-family real estate. They can be found where residential and commercial real estate meets.

They are further categorized into the following types:

Duplex, Triplex and Quadplex:

Accordingly, rental residences with two, three, or four units are referred to as duplexes, triplexes, and quadplexes. There are buildings of this type in almost every market. Individual investors frequently live in one unit while renting out another.

Garden apartments:

Low-rise rental apartment complexes with common outdoor space, yards, or gardens are known as garden apartments. They can be found anywhere. However, they are often in the suburbs.

Mid-Rise & High Rise Apartments:

High-rise apartments are those with 12 stories or more, whereas mid-rise apartment complexes contain five to twelve levels. They typically feature elevators in crowded urban regions like New York City, Los Angeles, or Chicago because of their height.

Dorms/Student Housing:

Student housing is real estate designed with students in mind and located close to colleges and city areas. Many have sizable communal spaces.

Senior Homes/Assisted Living:

Buildings that are designed specifically for elders. They are typically in areas with a high elder population.

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