Commercial real estate yields bigger profits
It’s a simple truth that cash flow is generally greater with commercial real estate and the yield is higher per square foot than in residential.
And experts say that now is a good time to invest in such properties.
Here are the top picks of commercial real estate types to invest in, according to a survey conducted by the real estate research firm Situs RERC.
INVEST IN: Industrial warehouses
With an investment condition rating of 7.6, industrial warehouses are entering a golden age in investment, thanks to the rebirth of manufacturing as well as the growth of e-commerce in the United States.
INVEST IN: Office buildings
When we say “invest in office buildings,” we mean invest in office buildings located in central business districts (CBDs) –real estate in these locations has an investment conditions rating of 6.6, according to Situs RERC. National Real Estate Investors adds that office buildings in CBDs currently show robust growth in prices than any other property type. The time is ripe!
INVEST IN: Neighborhood retail
Neighborhood shopping centers, regardless of the current state of the country’s economy, are still in demand because they continue to fulfill the immediate needs of the communities around them. Whether it’s a mixed-use building or a standalone structure, neighborhood retail has earned an investment conditions rating of 6.6.
INVEST IN: Student housing
The reason for the investment conditions rating of 6.5 for student housing is simple – demographics. Student populations are not to be dismissed, and investors are taking note. . You should, too. If you need further convincing about putting your money in student housing, check out this article.
INVEST IN: Hotels
The hospitality sector may have been badly hit in the last economic downturn, but hotels are taking advantage of this grace period to renovate and innovate, in time with the US market’s slow but steady return to shape. Their investment conditions rating? A nice 6.4, according to Situs RERC.
