The Best Types of Commercial Real Estate Investments
The best commercial real estate investments come from airtight strategies and thorough market research. It’s important to look at the pros and cons of different types of commercial real estate investments as you decide which option is best for your portfolio.
People and businesses will always need space to store their excess belongings during a move or as they accumulate more stuff. A storage facility in a convenient location is easy to fill, and short lease terms allow owners to get rid of bad tenants fast.
Revenue is easy to generate, so investors can benefit from tax insulation as their profits grow.
If you opt for this type of investment, remember that location is everything. Choose a facility in a profitable area that you imagine will retain its value over time.
Purchasing a single-tenant building or a skyscraper housing dozens of businesses can bring consistent revenue. That said, the value of office space fluctuates with the economy. It’s also worth considering that many businesses are moving toward remote workforces, opening the possibility for reduced office space demand in the future.
When the market moves away from some properties, it moves toward others. Data centers are massive buildings that house computer servers powering websites and cloud networks. The demand for these spaces is high and will continue growing.
Data centers are great investments to own, but they’re often expensive and controlled by large companies. Private investors have the best shot working through a real estate investment trust.
Another new player in the digital age, cell towers receive and transmit radio signals to and from cellphones. Each tower has space for multiple wireless carriers. Purchasing a cell tower will promise consistent income, especially if you offer a five- to 10-year lease. The most pressing drawback is that a tenant going out of business can cause major revenue loss and a prolonged vacancy.
Retail real estate is a stable investment. Businesses will typically sign agreements lasting anywhere from five to 20 years, and investors will have a consistent revenue stream during that time. But while shopping centers are dependable income sources, they are expensive to purchase, and losing a tenant will make it difficult to pay the mortgage.
Explore Your Options With Investment Real Estate
Investment Real Estate brokers favorable deals for buyers and sellers in the self-storage industry. Feel free to contact us online to discuss our services.