A Wide Range Of Opportunities In Commercial Real Estate

(For the PDF version: https://craveyrealestate.com/ns/wp-content/uploads/2018/06/Blog-A-Wide-Range-of-Opportunities-in-Commercial-Real-Estate.pdf )

Investors in real estate sometimes become fixed on one type of commercial property. However, there is a wide range of opportunities out there. Commercial property provides space for a business. The kinds of commercial properties are as diverse as the kinds of businesses out there.

Here are the major categories of commercial properties:

Retail

These properties are leased to tenants who sell goods directly to the public. Retail properties include:

• Strip Center. A retail center where the stores are aligned in a row.
• Neighborhood Center. A small shopping center that has a supermarket or drugstore, typically having up to 50,000 sf of rental space.
• Community Center. A medium-size center. Has about 50 stores and up to 150,000 sf of rental space.
• Regional Center. A large center, usually enclosed, with 2-5 department stores and 400,000 to 1 million sf or rental space.
• Super Regional Center. A large regional center with 750,000 to 2 million sf of rental space.

Theme Center

These are retail centers designed around a common theme. Here are some examples of theme centers:

• Off-Price Center. A retail center that caters to tenants offering merchandise at discount prices.
• Factory Outlet. A retail center that caters to manufacturers who sell their goods directly to the public.
• Fashion Outlet. A retail center that specializes in expensive, high fashion merchandise.
• Car Care Center. A retail center that caters to tenants who deal in automobiles and the automobile aftermarket businesses.

Office Buildings

Buildings that to leased to non-retail commercial users. These buildings are designed as garden, mid-rise, of high-rise structures.

Business Park

A group of rental buildings designed for office and warehouse users.

Warehouses

Buildings the provide lease space to users of bulk storage. There are two types:

• Light Industrial. Buildings that cater to storage users.
• Heavy Industrial. Buildings that cater to manufacturers.

Self-Storage Units

Buildings designed to rent space to small users. Usually 25 to 500 sf.

Lodging

Properties that lease living space to individuals on a daily basis or longer. These properties can have prices from budget to mid-range to luxury. They may be marketed toward transient, resort, convention, or commercial user.

• Motel. A property in which the automobile of the renter can be parked outside of the unit. Usually a garden type building with few amenities.
• Hotel. A higher quality property, with more amenities than a motel such as food and beverage services, conference areas, or health facilities.
• Suites. A lodging property that offers a living and bedroom area.

Multi-Use

Properties that combine two or more of the following uses: residential, commercial (retail or office), or lodging.

Condominium

Commercial properties that are either converted or developed to be sold to individual users. These can be retail, office or industrial properties.

Single Purpose Buildings

Properties designed for a specific purpose. For example, a theater or a bowling alley.

Your Investment

Successful commercial properties provide their users with what they want and what they need. Some properties can be upgraded by renovation and a change to a different use.