How to Invest in Commercial Property

by Mary Anne Ragragio

Posted on 2019-06-06 09:53:19

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How to Invest in Commercial Property


You are thinking about buying commercial property in which to house your business. Make sure you understand the commercial real estate market. And also need to know what this means, what are its different types and what do we need to consider before investing in commercial property.

Commercial property refers to buildings or land intended to make a profit, whether it’s from capital gains or rental income.

What are the different types of Commercial Properties? Commercial properties may refer to the following:

  • Office buildings. It is the most common type of commercial real estate.
  • Retail buildings. Retail refers to the sale of goods to the public for use instead of resale. It categories as single-tenant properties, small office buildings, small shopping centers and so on.
  • Vacant land. This category includes undeveloped investment properties, rural land in the path of future development.
  • Warehouse property. It is a building designed usually for storage of goods. And is also designed and built for the purpose of bulk storage of raw materials, finished or partly finished goods, manufacturing, etc. They are usually used by manufacturers, wholesalers, importers, and exporters, etc.
  • Multifamily. It is the classification of multiple housing units within one building. Units can be next to each other, common term for this is an apartment building.


Benefits of investing in commercial property:

  • Compared to residential properties, investing in commercial property gives more far more benefits in the long term. However, not all property investor is advised to invest in commercial property. Just ensure that you have enough knowledge and experience as well as financially qualified to able to overcome any problem if ever in the future.  
  • Commercial property, compared to residential property, gives you more return even when the market is down. The idea of commercial property is to keep the returns flowing freely without incurring any additional issues during the investing phase.
  • Ability to add value due to long term capital appreciation.
  • Stability of income because expenses are paid by tenants.
  • Strong returns with high-income potential


This whole article is for informational purposes only should not be taken as professional advice. This is the author’s personal expression of the topic.