Through our extensive experience and knowledge gathering, the IPG group has assembled some interesting pieces of information about the all-round relationships, best-negotiating terms, conditions and options that could be of use to potential commercial property investing.
With many years spent in the international CRE pleading and tenure, IPG has discovered the best type of real estate that hasn’t been as affected by the viral Covid-19 pandemic, as some other, also popular households. Get to know some of the best solutions for investing and buying your own commercial real estate.
Commercial real estate investments should complement the needs of your business
There are numerous ways to invest in commercial real estate, considering states of the market, liquidity of those spaces and, lastly the cash flow. All these types of development play a big role in the landscape of CRE.
CRE investors should take into consideration both good and bad sides of the CRE property types, and act according to the needs of their businesses or employees. Each type of real estate for commercial use hosts different kinds of tenants, equipment and has its own, distinctive, responsibilities.
Knowing the basic need of your business may be the determining factor for choosing the right CRE investment opportunity!
Offices and similar coworking spaces
Office spaces as real estate options can provide tenancy to one, or multiple tenants within the same building. Commercial properties like multi-story and high raised office spaces can typically host more than one business.
In many cases like these, the building stacked with offices and its tenants is usually maintained by a third party property management or a company. This actually helps the real estate investor to focus on their investment portfolio, rather than time-and-money-consuming day-to-day building maintenance and annual insurance and tax keeping.
The luxurious “A Class” Buildings
Office real estate, as a part of commercial property investing, is categorized by class. The “A Class” Buildings are known to be high-quality investments, often providing top-notch amenities. Their locations usually allow easy access, several transportation choices, even high-quality technological advantages.
The “B Class” Properties
Meanwhile, the “B Class” Properties are well-maintained, but older facilities usually leased at above-average rates but in the end much less costly than the “ A class”, in terms of renting.
The old “C class” Facilities
Lastly, there are the “C class” Facilities, typically more than 40 years old. Although they are often in need of upgrades, remodeling or some other form of “support”, these types of commercial real estate investments are prized for practicality – more than luxuriousness.
The flourishing industrial properties
The commercialization of industrial real estate includes spaces like warehouses, manufacturing, researching and development sites and spaces. These forms of CRE investments carry a greater risk on the market since they usually have a single-tenant, so proper real estate guidance and legal insight is mandatory.
Venues with office, warehouse or manufacturing spaces are more appealing to businesses since they provide more options that fit their business needs – Businesses that are involved in any kind of industry, are looking for facilities to store their goods.
Retail real estate – malls, shops, restaurants etc.
Malls, restaurants and shops are considered to be retail commercial real estate investment property. These spaces can provide tenancy to multiple shops, restaurants or people in the same. Put in simple words, any property that provides hospitality and “live” goods or services offered directly to consumers, fall under the retail category.
Depending on the tenant service and the terms of the lease, these can be challenging properties to own. Depending on the single or multiple tenants, these types of CRE investments can make a heavy impact on the value of the property.
Every investor seeks to make an investment that provides him with the best return for the invested resources. There are no universal-size-fits and regulations that can be applied to every CRE property investment.
Making the CRE investments strategy takes time, knowledge and a significant amount of research that can help an investor select the right investment for their portfolio. The best CRE property for investors is the ones that suit best the individual business needs.