Investment in commercial real estate

The concept of commercial real estate covers industrial, warehouse, retail, office facilities, as well as smaller ones - apartments, hotels, garages and parking lots. That is, it is all non-residential real estate. And even considering the commercial direction as a single concept, it is impossible to bring all these objects under one indicator of the effectiveness of capital investments.

Comparative characteristics of commercial properties

Just like any other life scenario, the economic situation is influenced by many factors. Therefore, the commercial real estate market is quite changeable, and when planning an investment, it is necessary to study it at the moment in comparison with previous periods and forecasts.

The list of the most popular and profitable segments of commercial real estate looks like this:

• office space - in this area it is better to invest at the start of construction, and then rent it out. This option is considered the most profitable;
• retail property - here the main thing is to proceed from the purpose of the object and its location. For cafes, fast foods, hotels, apartments, the busiest areas, such as the business center of the city or tourist routes, are great. In the case of investing in the construction of supermarkets, beauty salons, the optimal location will be in established residential areas; 
• for industrial, warehouse real estate, it is important to have a successful location with territorial proximity to transport interchanges, and at the start of investment it is recommended to have a preliminary agreement with prospective tenants about the upcoming lease. This will serve as a reliable insurance for the investor, since such commercial facilities are capital-intensive and quite expensive.

Ways to invest in commercial real estate

Depending on the investment project (land plot, construction, operating facility), the following methods of financial investments are distinguished:

1. The method of buying and selling is the least risky and the most popular among investors. In this way, it is possible to invest both in the construction stage and in finished objects;
2. Investments at the start of construction. This path will require a deliberate approach from the investor (taking into account the demand for the object in the development area, the availability and convenience of infrastructure, etc.), and already when the object is put into operation, it will increase its cost by up to 50%.

Having basic information about a particular property, the investor will be able to easily determine the object and method of successful investment.