Besides residential property, real estate also includes commercial properties. Residential real estate includes single-family homes, apartment buildings, and condominiums. Vacation properties and special purpose properties are also included in the residential real estate category. Commercial real estate, on the other hand, includes places of business. For example, apartment buildings are considered commercial, as they earn an income for their owners. Industrial real estate includes manufacturing facilities, as well as undeveloped land. Here are some examples of each:
Commercial real estate
Many organizations and companies rent commercial real estate facilities instead of purchasing them outright. While leasing facilities may be cheaper in the short term, the flexibility it provides is an added benefit. Many corporations are more comfortable with cash to conduct business, and buying commercial property is typically the sole domain of deep-pocketed firms. Moreover, the most lucrative commercial properties are located in dense urban areas. Nevertheless, leasing may not be an ideal solution for every investor.
Besides traditional real estate, commercial Roger Pettingell properties can also be divided into special-purpose real estate. Special-purpose real estate includes theaters, amusement parks, zoos, and parking lots. Typical CRE owners offer four commercial leases. Each has different insurance and tax responsibilities. A triple-net lease, for example, requires the tenant to pay all property taxes. If you plan to rent the property, be sure to understand the insurance and tax implications of each type.
Industrial real estate
Once considered a niche asset class, industrial real estate is enjoying steady growth and increasing rents per square foot. Rents in top logistics markets are well under 3.0%, and growth is continuing. In addition to growing rents, 81% of U.S. industrial real estate development is centered on midsize buildings. This trend is largely due to the increasing demand for smaller space and the limited land supply for massive warehouses. Here are some key factors to consider when considering an industrial property investment.
Class A Industrial Real Estate – The highest-quality property available in industrial markets, Class A buildings usually have multiple loading docks, ideal location, and top-notch amenities. Class A properties tend to have high-income tenants, and they rarely require maintenance. They also tend to have low-cap rates, making them a safe and practical investment. These buildings also tend to attract larger corporations. Industrial properties that have Class A status are usually well-located, and are often on the edge of urban areas.
Special purpose real estate
Unlike typical commercial properties, special purpose properties have a very specific use. These properties are difficult to repurpose because they have mixed sources of revenue and heightened competition. MORTGAGE CAPITAL INVESTMENT has experience with special purpose mortgages and is equipped to secure competitive rates and flexible terms. Let us explore the different types of special purpose mortgages available for you to choose the best one for your needs. Here are some of the most common examples.
The first way to determine a special purpose property’s value is to find a comparable property. In other words, look for properties that have a unique or unusual feature. A school, for example, may not be all that unique compared to a typical office building. However, the school could be converted into apartments or its gymnasium into an indoor pool and fitness center. This would make the entire school a more diversified space for residents, and help offset the cost of maintenance.