If you are thinking about purchasing commercial real estate as a type of investment, there are a few things that you should know about these properties. When people think about commercial buildings or structures, they are often envisioning large skyscrapers. However, these come in many different shapes and sizes. They can be found in every state, and the prices can vary substantially. It just depends on the type of building you would like to invest in, and what the resale value will theoretically be, before you decide to place your money into one of these properties. Here are some interesting facts about commercial real estate that are just as valid today as they always have been in the real estate industry.
Most Commercial Buildings Are Not Large At All
Commercial real estate broker is typically representative of smaller structures. For example, about 70% of all of the buildings that are designated for commercial purposes are 10,000 square feet or less. They could be used for office space, or as a warehouse, but in most cases they are not large commercial skyscrapers. As a result of this, you can start to see the profit potential with even a minimal investment. Since most people are not purchasing skyscrapers, and most of the commercial property deals that is available is much smaller, you will have more working capital by which to purchase potentially profitable commercial properties.
Retail Commercial Buildings Are The Least Popular
When you think about a shopping mall, this is one of the cornerstones of our economy, or at least it used to be. Many of the statistics today show that online sales are beginning to rise at astonishingly fast rates. It is proposed that, at some point in the near future, shopping malls will no longer be the point of contact between retail products and the consumer. As a result of this, the resale value of a shopping mall, or any other type of retail structure, is not going to be a good long-term investment.
Commercial Buildings For Office Space Are Much More Popular
If you are going to invest in some type of commercial property, you should consider investing in commercial buildings. That is because they are becoming more popular than ever before. Even over warehouses, these are in high demand, and far above any type of structure for lodging. When we think about hotels, we understand that people stay at hotels all over the world, but despite that, office space is in much higher demand. If you are going to purchase a commercial building, you will be able to rent out the space in that structure for a substantial profit, plus it will also increase in value far more quickly than any other type of commercial space.
These ideas should cause you to think about the way you are going to invest your money in commercial properties that are available right now. If you do have the cash to do so, you should consider investing in office buildings which can be rented out for a sizable amount of money. Retail buildings are not as popular because of the ongoing threat of online sales. Warehouses, however, might be a very good opportunity. As companies like Amazon continue to increase in size, and shipping products quickly to consumers is demanded, they will need more warehouses and distribution sites across the nation. Therefore, if you are going to invest your money, avoid any type of commercial building that involves lodging or retail, and focus on buildings with office space and warehouses for products that are sold every day.