When most people think about commercial real estate, the first image which comes to mind is apartment rentals. While these properties are indeed a major component of commercial real estate, there are quite a few other kinds of properties which also provide investment opportunities. The simplest definition of commercial real estate includes anything which is larger than a single house on a lot. That means even if people are living in the building, it would still be considered a commercial property, if it’s larger than a single house. Here are some of the most common types of commercial real estate.
Hotels and resorts
These types of properties are probably not the easiest way for a new investor to break into commercial real estate. However, if you’ve been around a while and know the ropes, hotels and real estate can be profitable types of properties. In most triple net lease agreements, rental increases are actually built right into the tenant’s agreement.
This can be one of the most exciting areas of commercial real estate to become involved with. However before you do get involved, it’s best to spend some time researching this aspect of commercial real estate, so that you don’t get burned by being uninformed.
Retail centers consist of malls and shopping centers, and can be very profitable because they’re normally leased out on long-term triple net leases. If you’re an investor, your return rate will remain the same over a period of time as taxes and expenses increase. Rents will go up over that same period, so that your returns increase significantly, and your increases will be built right into the lease agreement.
Warehouses and Offices
These facilities represent great opportunities for investment, because they generally come with a triple net lease. With this type of lease, the tenant is required to pay the rent in addition to real estate taxes, property insurance, and all maintenance and repairs necessary for the property.
Looking to Invest in Commercial Real Estate?
If you’re thinking of investing in commercial real estate, we may be able to provide the capital you need. Contact us at Hornet Capital Solutions, so we can discuss some loan options you may be eligible for.