Commercial real estate consists of many types of properties. Office condos, office buildings, retail stores, shopping centers, stand-alone restaurants and warehouses are all examples of small commercial real estate. Small commercial real estate is a great way to diversify ones income streams and stock market investment portfolios.
Commercial Property investing equals Cash Flow!
While residential investments tend to have lower per unit cash flow in the $100 – $150 per month range per unit, commercial real estate is much different…
Commercial Real Estate Returns
Commercial investment properties provides returns that are exponentially higher than those of singe family residential properties. With capitalization rates that can be as high as 8-12% or more, it’s no wonder many investment professionals believe that 10% to as much as 25% of an individual’s investment portfolio should contain some physical real estate investment properties.
Given recent economic times, owning real estate as an investment just makes sense. Specializing in small commercial properties and multifamily residential and apartment communities, those properties from $100,000 to $7.5 million is a great way for real estate investors to get into the market. Small commercial real estate is one of the best investments for investors that don’t have tens of millions of dollars to spend.
So what is small commercial? It’s that house on the side of a busy street that can be converted into an office space for a doctor or attorney. Its that office condo or entire building of office condominiums. Small office/warehouses, gas station/convenience stores, small shopping centers and restaurant out parcels are all considered small commercial real estate.
Investors that want to diversify investments and create additional streams of income invest in physical small commercial real estate.