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In this article, we discuss the areas of investing in a commercial real estate, figuring out the difference between office, retail, and industrial property types.
A highly popular commercial real estate option is offices. Offices provide the lowest financial yield but are considered a secure investment in comparison to retail or industrial property.
This is because office tenants tend to remain on their premises more dependably than shareholders of a retail business, consequently supplying greater security to investors.
If You're Interested in Buying office property:
Location is critical to retail property. It must be easily accessible and appropriate for shoppers to get to.
Industrial property has become the most volatile concerning yields. The principal reason industrial property yields are relatively high is that they include greater vacancy risk.
Factories can be vacant for quite a while, anticipating a marketplace recovery and, the proper tenant.
They're also often assembled for a specific reason, for instance, building bathroom furniture, manufacturing food or construction of car parts. If the food manufacturer goes bankrupt, it may be a long time in-between until you find another firm that will utilize the pre-assembled property.
If you'd like to get industrial property:
Whichever type of commercial property you are buying, do not overlook and always read the lease carefully!