When you think of commercial real estate investments, what comes to mind? For most people, commercial real estate is synonymous with retail or office space, but while these are definitely types of commercial real estate that offer potentially lucrative investment opportunities, they aren’t the only types available to you as an investor.
One great way to invest in commercial real estate is by investing in multi-family housing, such as a condo or apartment building. Most investors are not in a place financially to purchase an entire building or complex, but many of these properties are owned by trusts or investment clubs, making it much easier for investors to participate.
If you’re interested in this type of commercial real estate investment, you could pool your investment capital with others’ capital via an REIT (real estate investment trust) or another investing group or club. Essentially, instead of owning the property itself, you’ll own equity or shares in the property, and you’ll receive quarterly or monthly returns on the property’s profits based on your percentage.
Medical Real Estate
Medical real estate is another type of commercial real estate that is often available through real estate investing groups and trusts. This type of real estate can include any property that is designed and built out for the medical industry. Some popular medical real estate properties are hospitals, senior care centers, specialists’ clinics, general practices, and urgent care clinics.
The appeal of medical real estate is that it is always in demand. With people living longer than ever, geriatric care is a growing field, and with the enactment of the Affordable Care Act, more people than ever before have health insurance and are seeking medical care. As a result, more and more medical real estate properties are being built, but the supply has not come close to meeting the demand in most markets.
Retail Shopping Centers
Finally, we mentioned retail spaces earlier, but let’s go into a bit more detail. Retail shopping centers generally have multiple rental units, which can have a great stabilizing effect on your investment. If you invest in a property with multiple tenants, you will likely still see quarterly returns, even if one or more tenants leave and you go a few weeks or months between tenants in that space.
Furthermore, retail properties tend to have longer leases than residential properties, which means that you’ll have more stability in your income from a commercial property like this. If one of your tenants is a large corporate store, it’s not unusual for them to sign a long-term lease of 15 to 20 years.
These are only a few of the many types of commercial real estate investments you may want to consider to diversify and stabilize your portfolio. Consider them and other commercial properties before you commit to your next investment.