Different Types of Commercial Real Estate, Part 2

Commercial real estate covers a diverse group of structure types and uses, as well as vacant land.  This is part two of a three part series explaining different types of commercial real estate.

Retail Space Real Estate Properties

This category includes single buildings used as stores for clothing, electronics and other consumer products, as well as malls, strip centers and the like.

Restaurant spaces are a specialty subset of the retail category, with some listings shown as restaurant/retail. Valuations can be based on size and land value, retail sales per square foot or other investment return calculations.

Different Types of Commercial Real Estate, Part 1.

Commercial real estate covers a diverse group of structure types and uses, as well as vacant land.  This is part one of a three part series explaining different types of commercial real estate.

Multi-Family Commercial Real Estate

Multi-family commercial real estate property types include duplex homes, and other construction for habitation by mulitple family groups.

Condominiums are frequently called multi-family because of their construction as a group, but are normally listed and sold as single family residential units.

Duplex homes are also frequently listed and sold as residential units to a buyer that lives in one side and rents out the other.

A Good Rule is a Year’s Income in Reserve

Unlike residential real estate, the commercial real estate agent cannot count on a fast start by working with friends and relatives.  Generally speaking friends and relatives aren’t buying or leasing offices or retail spaces normally.

A year’s income in reserve will help reduce the stress of learning a new profession.  Unless your current sphere of influence is made up mostly of business people, it’s likely that your start in commercial real estate will be a gradual one. Be prepared.

The typical commercial real estate client isn’t as emotionally involved in the process as a residential client. You can’t make a living just showing properties until the client goes “I love it…this is the one!” You’ll likely be dealing with a business person who will be much more analytical and want a great deal more due diligence from the real estate professional with whom they choose to work.

The commercial real estate agent is one who is willing to work hard, is quite aggressive, and above all, is intelligent and very competent in the special skills required for this niche.

This is a profession that can be financially rewarding, but one must be prepared for the delay until the first commission and the time between deals.