Real estate is a broad category that consists of both residential and commercial property. Residential properties are usually single family homes. Other types of residential real estate are condominiums, co-ops, and townhouses. There are also high-value homes and triple-decker apartments. Commercial properties include office buildings and shopping centers. Industrial properties, on the other hand, are mostly warehouses and other buildings that distribute goods.
Commercial real estate
While some businesses own their own buildings, most rent commercial property. These properties are owned by an investor who collects rent from tenants. The rents that are paid for commercial property are generally quoted in terms of annual rental dollars per square foot. In comparison, residential real estate rates are typically quoted in monthly rents. Leases for commercial properties can last one year or up to 10 years, depending on the type of property. Most office buildings and retail properties have leases that last between one to five years. Residential properties, on the other hand, are usually leased on a month-to-month or yearly basis.
Before investing in commercial real estate, you should know what types of properties you want to purchase. Some of these types of properties are full-service and have an attached golf course or water park. Other types of commercial property include special-purpose properties, like bowling alleys, churches, and amusement parks. If you’re interested in investing in commercial real estate, it’s a good idea to read blogs and listen to podcasts about commercial real estate, and join social media groups for your area.
Industrial real estate
Industrial real estate includes land and buildings used for production, manufacturing, warehousing, and research and development. These properties are usually in designated industrial areas. Typically, industrial properties are located on or near major thoroughfares such as Commerce Drive or Industrial Way. Some industrial complexes may even have smaller adjacent streets named for the developer’s children.
Industrial properties often have higher rental yields than residential properties. They also often have longer lease terms. A typical industrial lease is three to 10 years long. A tenant may be able to extend this lease as often as desired. Industrial properties typically use triple-net leases that include property taxes and utilities paid by the tenant. This Realtor continuing education helps to keep maintenance costs to a minimum.
Industrial real estate properties tend to appreciate in value over time. They also provide a stable cash flow. However, industrial real estate investments are not without risk. An experienced broker can help you buy and sell industrial properties.
Special purpose real estate
Special purpose real estate appraisers can help you determine the value of a property based on its special purpose. This type of real estate is usually old, sometimes centuries old. The property will have property records, and the appraiser can use those records to determine the value. However, these records may not give you a conclusive answer.
These special-purpose properties can be profitable investments. However, they require careful planning. For example, investing in a zoo or amusement park isn’t a good investment if you don’t have a lot of money. You’ll need to do some research and consider the type of location you want to invest in.
Special purpose real estate can be divided into two general types: greenfield and brownfield. A greenfield is a piece of land that has never been developed, and brownfields are previously developed land that may be contaminated. Other types of special purpose real estate include parks, amusement parks, churches, stadiums, and zoos.