Real Estate 101: The different commercial properties available

According to London-based real estate blogger Ahmed Nashaat, there is a lot of flexibility in investing in commercial real estate because there are various categories that investors could capitalize on. The most common properties are listed below:

Offices

The office segment is one of the best investment vehicles due to its long-term advantages for the property owner. Typical leases last more than five years, meaning steady income for the owner and landlord.

Additionally, most offices require triple net leases, wherein tenants pay for not only the use of the assets but also maintenance and repairs, property insurance, and real estate taxes. The challenge with this type of commercial real estate is that the developer requires an extensive understanding of the market characteristics and trends.

Retail centers

These commercial spaces are similar to offices in that the property is leased out on a triple-net basis. That said, the length is not as stretched, with fewer years in the contract agreement.

The advantage of a shorter-term lease is that as overall rental or leasing rates rise, retail commercial estate owners can also drive up their prices. However, even though there is a higher potential for returns, the retail sector is more complicated and dependent on location.

Industrial spaces

Industrial real estate spaces include warehouses, manufacturing facilities, research and development facilities, and other properties that house industrial operations. According to real estate blogger Ahmed Nashaat, the development and management of this asset type require a great deal of expertise and knowledge of environmental, legal, and zoning provisions.

Multifamily housing

Finally, Ahmed Nashaat mentions multifamily housing, a type of commercial real estate that includes apartments, condos, townhomes, and other residences. These properties are usually owned by investors and rented out to tenants. Multifamily housing can be found in urban, suburban, and rural areas.