A deeper understanding of popular types of commercial real estate should make it easier for you to identify opportunities for choosing investment properties. Buying commercial real estate always involves some back and forth with the current owner. You can make the process much easier, however, by using a database that gives you the accurate contact information for commercial property owners.
Consider the advantages of disadvantages of the following types of commercial real estate. Then, you can use ProspectNow to generate a lead list and manage your campaigns.
Multifamily
Multifamily properties can include anything from duplexes to high-rise apartment buildings. If the building has more than one residential unit, it counts as a multifamily property.
These types of commercial real estate can generate significant amounts of income with varying degrees of work. For a hands-off approach, consider hiring a property manager to collect rent and maintain the building. If you want to earn more money and don’t mind doing more work, you can manage the buildings yourself.
Regardless of the revenue-generating strategy you choose, you will need to find multifamily properties for sale. ProspectNow uses predictive analytics so you can identify off-marketing multifamily properties owned by people who will likely want to sell within the next 12 months.
Office
Modern offices tend to offer robust infrastructures that let dozens of computers access the internet and process data. That also means giving tenants plenty of electrical outlets, generous lighting, and open floor plans that they can adjust to their unique needs.
Of course, not all office buildings are designed to accommodate dozens or hundreds of employees. You can find plenty of buildings with officers made for a small number of people. A smaller size makes the spaces suitable for SMBs that want to keep their overheads as low as possible.
When browsing these types of commercial real estate, think about your target audience and what they need from their office spaces.
Industrial
Industrial properties are types of commercial real estate where companies can develop, manufacture, and test products. They often have large production floors that can hold all of the equipment needed to build products. Depending on the location, industrial properties might also need a specific type of zoning. Without the right zoning, noise from industrial sites could interfere with residents and consumer-facing businesses in the area.
Interestingly, the value of industrial real estate actually grew during the COVID-19 pandemic. While offices sent their employees home to participate in remote work, manufacturing facilities still needed employees to work on site. The usefulness of the properties makes them highly valuable as rental spaces and investments.
Retail
Types of real estate for retail stores can have diverse needs. Some retail stores only need salesrooms with a few hundred square feet of space. Others need multiple floors and thousands of square feet.
With so many types of commercial real estate that can meet retail’s needs, it makes sense for property investors to pursue these options.
Hotels and Hospitality
Hotels and hospitality types of commercial real estate can include anything from a small motel to a luxury resort. The amount of money you can invest in the property will partly determine which options you can buy. It also makes sense to consider how much revenue you expect to generate from your hospitality properties.
Mixed-Use
Mixed-use types of commercial real estate have multiple units designed to accommodate diverse activities. A mixed-use property could have units that meet the needs of offices, restaurants, retail stores, and residences. Often, they have retail stores and restaurants on the first floor. Additional floors are dedicated to offices and residences.
Mixed-use commercial real estate can make it easier for you to attract diverse tenants and create a secure revenue stream. If one industry suffers and tenants need to end their leases, you can rely on renters from other industries to pay you while you search for someone to fill the empty space.
Land
Buying commercial land gives you enormous opportunities for a strong ROI. You could develop the land and lease spaces to businesses, sell the land to a developer once it becomes more valuable, or lease the property for someone to use as a farm. The strategy you take will depend on several factors, such as the property’s location and quality of the land.
Find who owns land that you believe will become more valuable over the next few years. You might not have to do anything other than pay property taxes and wait for the area to become more developed. Then, you can make money by selling the real estate to someone else.
Special Purpose
Many types of commercial real estate count as special purpose properties. Basically, the term refers to any building that serves a unique purpose that you cannot change without a significant investment. Ice skating rinks, hotels, bowling alleys, and breweries all count as special purpose commercial real estate.
Because these properties have such specific purposes, you should think carefully before buying them. If you cannot find someone to lease or purchase the real estate, it could sit unused for years.
Find Leads for All Types of Commercial Real Estate With ProspectNow
There are a lot of opportunities within different types of commercial real estate. Identifying and contacting useful leads, however, can take a lot of time. You can make the process much easier by using a subscription database instead of relying on government agencies and public records.
ProspectNow has been around since 2008. The data that users can get from ProspectNow is a lot more expensive on other competing platforms. By using ProspectNow, you can close more deals, and, therefore, make more money! ProspectNow is an essential tool for success in commercial real estate. Additionally, ProspectNow is trustworthy and easy to do business with, and a provider of reliable data.
Are you ready to increase your ROI by discovering off-market types of commercial real estate? Getting a head start could give you an advantage over your competitors.
See how ProspectNow can help by requesting a free demo that introduces you to the commercial database’s broad range of features!