There are many ways to generate income and investing in commercial real estate is a proven way to obtain high returns. But it is not for the faint of heart, nor it is an easy “hobby.”

What Are the Benefits of Commercial Real Estate Investing?

While the motivations for investing in commercial real estate can vary from individual to individual, the benefits can be significant including producing high incomes. Commercial real estate has less competition and uses longer leases than residential properties. And unlike other investments, it provides cash flow. In addition, most commercial real estate is not purchased with 100 percent cash, so there is good leverage with these investments. There is also security because commercial properties are based on basic human needs.

What Are Commercial Real Estate Opportunities?

There are abundant commercial real estate opportunities in many parts of the U.S. These include:

Office space is the most common type. Office buildings range from single-tenant offices to large skyscrapers.
Retail is another visible and widely present type, including restaurants, small shops, services enterprises, banks, strip malls, and major retail centers.
The industrial category includes warehouses and manufacturing sites. This category is prime for investment opportunities.
Multifamily properties are properties ranging from small multifamily dwellings to apartment complexes to high-rise condominiums. Tenants in these units have higher turnover compared to office and retail buildings, so that is a factor to consider in any investment decisions.
Special purpose real estate is those properties designed for a specific purpose so it may be difficult to repurpose those properties for other uses. For example, car washes, schools, and self-storage centers.

When investing in commercial real estate, it is important to avoid mistakes like not understanding the local market, not understanding the risks, not visually inspecting the properties, and being over-leveraged.

Seek Expert Financial Assistance

Contact Fortis Funding based in Glen Allen, VA. Having the capital for continued growth is vital for real estate investors and entrepreneurs. We have a comprehensive portfolio of business loans to meet your needs now and in the future.