The real estate industry is a critical force behind the country’s economic growth. The following piece is part of an overall educational series for real estate professionals and individuals looking to get started in commercial real estate.
As the landscape of commercial real estate continues to change, it is important to brush up on the different property types and how they are looked at as a real estate professional.
1. Multifamily- A multi unit property, occupied by residential tenants. This is considered the safest property type to own; everyone needs a place to live, no matter where technology takes us.
2. Office Building- Technology has changed the landscape of office space. People work remotely and rent shared workspace. Office space in mixed-use properties are becoming popular.
3. Shopping Center - Retail has recently been getting a lot of bad rep, but we see strip shopping centers still going strong.
4. Healthcare Properties- We see a growth in assisted living facilities to accommodate the aging baby boomer generation. These deals are generally more complex due to the nature of the property’s income.
5. Mixed-Use – The advantage with a mixed-use property is that the risk is spread over several markets.
6. Industrial Properties- This includes storage centers, parking garages etc.
When leasing to a business you have the advantages of long term leases and the professional relationship, in terms of rent and management. Also, the tenant is usually serious about property maintenance.