What is commercial real estate investing?
Commercial real estate investing is the investment of capital into business or work spaces. Commercial real estate is often seen as the domain of the wealthy, but is accessible to many through investing tools such as Real Estate Investment Trusts. Because commercial real estate is intended to be used as a working space, this covers everything from office building, shopping malls, and restaurant spaces. These leases for working space can vary on passing different costs up to the owner or to the renter, which adds another layer of complexity compared to residential real estate investing. Space changes are frequent and can be assisted with property managers, but this type of investing is much more involved. As each type of space means taking into account different types of regulations or constraints. Another thing to keep in mind is that commercial real estate also has regulations for things like zoning, which residential rental properties don’t have.
Commercial real estate being for commercial use tends to operate on longer form rental agreements. This occurs to allow businesses time to get up to speed if they are new and/or for remodels that need to be done to make the space operational. Just like with residential real estate, you will have to property taxes to pay and other forms of insurance to hold. It is important to understand the pros and cons of this type of…
