6 Types of Commercial Real Estate Investments

So, you’re interested in investing in Calgary commercial real estate? There are various kinds of commercial property you can invest in, each with different rewards and risks. When trying to decide what type of commercial property investment you’d like to make, there are a few questions to ask yourself. These questions include:

  • How much income are you trying to generate?
  • How long do you plan on owning the commercial real estate?
  • Is the market for this type of property currently inflated?
  • What risks are you willing to deal with?
  • How many tenants do you want?
  • Are you interested in providing housing?

Depending upon your answers for the above questions, there are various types of commercial real estate investments to look into.

1. Investing in Land

When investing in land, there are several ways you can make money on your investment. The land can be rented to local farmers to allow them to grow and harvest crops or raise livestock. If the property you purchase is wooded, a logging company may be interested in harvesting the lumber on your property. Some invest in land to later sell it to a real estate developer, often resulting in large payouts.

2. Investing in Industrial Property

Industrial property can have a variety of purposes, from warehouses and manufacturing to research facilities and much more. When investing in industrial property, it is best to research the market and get a feel for how easy obtaining tenants will be. These types of properties can be harder to gauge demand and may pose more risk.

3. Investing in Office Buildings

New businesses are constantly popping up around Calgary, making office buildings a worthwhile investment. Regardless of if you live in a big city or a smaller town, office space is always needed. Depending upon demand you may opt to buy a single tenant space or invest in one with multiple units. Businesses often seek longer leases, making it easy to project profits for a long duration of time.

4. Investing in Retail Space

Retail space is very similar to office space. However, its location may be of more importance. If the retail space is located in a low traffic area, you may have a hard time finding or keeping tenants. Be sure to understand how heavy the traffic is in the area and what kind of demand there is for retail space and new locations to shop.

5. Investing in Storage Units

Storage units may not sound like the most exciting investment. However, there is definitely money in the industry. When considering a storage facility as your investment, be sure to check local competition and location. Most people don’t want to travel far to store/retrieve their items.

6. Investing in Multifamily Housing

Although multifamily housing provides residences for tenants, they are still considered commercial property. A multifamily “house” is typically known as an apartment, townhome or condominium. With population and demand for housing constantly on the rise, multifamily housing can be a great commercial real estate investment.