There are plenty of smart investment opportunities to choose from when it comes to safe and profitable returns. One of the smartest investments you can make is in commercial real estate Michigan. But first, what is commercial real estate?
Commercial real estate is any property that is intended for business or retail purposes. Properties are leased and rents collected from businesses instead of occupants who are living there. It can involve converting a residential property into office or retail space, or purchasing empty, raw land and constructing or developing property intended for commercial use on it.
There are different types of commercial real estate, primarily five types that are most common:
There are different classes to office real estate with Class A being the top tier. These buildings offer excellent finishing and developed properties that are above average for the area of location.
Class B is second, with buildings being more accommodating and offering a range of rates for different businesses. The building finish is typically good but not comparable to Class A.
Class C is the most affordable and least developed, offering functional spaces at lower than average rates.
Either anchored such as a Target or multi-tenanted like multiple retail stores in the same vicinity; these can also be standalone buildings such as plazas or malls, or intended for single use such as an upscale boutique.
This also includes various types of properties such as factories where manufacturing takes place, or just assembly lines; others are warehouses and distribution centers; flex industrial complexes combine both offices and factories
4) Multifamily, Hotels and Mixed Units
These include apartment buildings or a mix of commercial and residential spaces. They’re fairly diverse and a great place to start for most investors.
5) Land Development
One of the most exciting opportunities for investment, land development offers a blank slate with more control and ownership. This is for the long-haul because it needs more involvement than other forms of real estate.
Commercial real estate offers a lot of diversity and helps you cut corners since you don’t have to be the sole investor—which means the burden of a loss, should it happen, will not be yours alone. There are options in every price range and set up as you can see. A small investment is also bound to be profitable.
It’s a two-way relationship with tenants and owners/investors because mutual interests are at stake when it comes to factors such as maintenance. Plus with a business-to-business relationship with your tenants, the work-life balance is a lot easier to maintain, laws are more flexible so leases are too.
If you’re still on the fence about the investment, get in touch with us at Macomb Commercial Real Estate and have one of our expert brokers walk you through the many advantages of property ownership.