4 Best Commercial Real Estate Types for Individual Investors

As an individual investor, you’ve likely come up against large firms who have seemingly unlimited funds when it comes to commercial real estate investments, allowing them to invest in properties that may or may not provide high yield returns while shutting you out. Individual investors need to find commercial real estate in Central Texas that provide large returns with less capital. In this post, we’ll reveal the best types of commercial real estate for individual investors.

The Best Types of Commercial Real Estate Investments for Individual Investors

Apartments, or Multifamily Developments

Apartments, or multifamily real estate developments, are one of the best investments a commercial real estate investor can make. Everybody needs a place to live, and demand for housing is at an all time high. Investors in multifamily real estate properties typically see a large amount of cash flow due to the fact that apartments hold a large number of tenants. Furthermore, apartments have some of the lowest vacancy rates seen in commercial real estate, meaning that income collected remains relatively steady. Lastly, multifamily real estate properties provide the easiest pathway for investors to get into when they first decide to explore commercial real estate investing.

Self Storage Facilities

Self Storage facilities are quickly becoming one of the best commercial real estate properties an investor can choose to invest in. Using similar logic as with investing in apartments, self storage facilities are commercial buildings with a high occupancy rate. Self storage facilities are usually greater than 50,000 square feet, meaning investors are poised to see steady monthly income as people rent individual storage units. Self storage investment properties are also one of the few commercial real estate investment opportunities that is considered “economy proof.” This means that the demand for self storage will always be around in times of recession and in times of economic growth.

Shopping Centers

Shopping centers are also wise investments for commercial real estate investors. The terms shopping centers encompasses both strip centers and shopping malls. Many investors choose to invest in a shopping center development because of the potential for long term stability. Most tenants in a shopping center development agree to anywhere from a 5 year lease up to a 20 year lease. This type of stability is appealing to investors as it all but guarantees long term income stability.

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Office Buildings

When it comes to commercial real estate, office buildings can be a broad term. Office buildings can either be a single building with a single tenant or apply to skyscrapers with 80 floors and dozens of tenants. Investors choose to invest in office space because when the economy is booming, so does their income from office space rent. Office buildings are also high quality long term investments, as owners of these properties reap the benefits of holding onto the property for many years.

2024 Update: Investing in Mixed-Use Developments

In 2024, the commercial real estate scene is witnessing a significant transformation, with mixed-use developments at the forefront of this change. Blending residential, commercial, and occasionally industrial spaces, these developments are turning both urban and suburban areas into thriving, inclusive communities. Let’s explore why mixed-use developments are becoming a go-to investment choice and how they are shaping the future of living and working spaces.

The Growing Appeal of Mixed-Use Developments

Mixed-use developments stand out for their ability to merge different property types into one cohesive unit. This fusion not only elevates the living standards for residents but also opens up numerous investment opportunities. Catering especially to the preferences of younger generations, who value the ease of access to amenities like restaurants, shops, and entertainment right at their doorstep, mixed-use properties are perfectly in tune with today’s societal shift towards more interconnected and sustainable living spaces.

Exploring the Different Facets of Mixed-Use Developments

As we delve into the types of mixed-use developments making waves in 2024, it’s clear that each offers its own set of benefits:

  • Vertical Mixed-Use Development: This design strategy places different uses one above the other, ideal for the space constraints of urban environments. The lively mix of retail on the ground floor with offices or homes above attracts a diverse crowd and invigorates city streets.
  • Horizontal Mixed-Use Development: Here, various uses are laid out side by side, often in separate buildings. This style fits well in suburban contexts where land is more plentiful, allowing for a spacious community feel.
  • Walkable Urban Mixed-Use: These developments prioritize foot traffic, creating neighborhoods where all essentials are just a stroll away. Including a mix of dwellings, shops, and green spaces, they enhance the urban living experience.
  • Transit-Oriented Development (TOD): Located near public transport hubs, TODs advocate for a lifestyle less dependent on cars, aligning with sustainable living ideals and catering to those who value convenience and mobility.
  • Live-Work Spaces: Designed for the modern professional, these spaces combine the workplace and home, offering a solution for entrepreneurs and freelancers seeking flexibility.
  • Mixed-Use Retail Centers: By adding residential and office components to retail setups, these centers evolve into all-encompassing destinations, responding adeptly to the changing retail landscape.
Why 2024 Is the Year to Invest in Mixed-Use Developments

The benefits of investing in mixed-use developments are more pronounced than ever:

  • Diversified Income Streams: The blend of residential, retail, and office components ensures steady income from multiple sources, providing a safeguard against economic dips.
  • Enhanced Returns: Thanks to their wide appeal, mixed-use developments often yield higher returns compared to single-purpose properties.
  • Robust Demand: The lifestyle convenience these properties offer continues to attract a wide range of tenants, ensuring strong demand.
  • Community and Zoning Perks: Favored by municipalities for their role in fostering sustainable and vibrant communities, mixed-use projects may enjoy smoother zoning and approval processes.
  • A Commitment to Sustainability: Embodying principles of walkability and environmental friendliness, mixed-use developments align with contemporary urban planning ideals.
  • Managing mixed-use properties does require meticulous planning and possibly the expertise of seasoned property managers to cater to the varied needs of a diverse tenant base effectively.
Mixed-Use Developments: A Vision for the Future

As we progress through 2024, the allure of mixed-use properties for commercial real estate investors is undeniable. These developments aren’t just real estate investments; they’re investments in the fabric of communities, offering a glimpse into the future of how we design, live, and work together. With their blend of high returns, societal contributions, and alignment with modern living preferences, mixed-use developments are an astute choice for those keen to make their mark in the ever-evolving world of commercial real estate.

Casey Development, Ltd: Commercial Real Estate Developers in San Antonio, New Braunfels, and Austin

If you’re an individual investor and you’re considering getting into the commercial real estate investment industry, you need to partner with a trusted commercial real estate advisor and developer like Casey Development, Ltd. Our team has been helping commercial real estate investors develop properties from the ground up to provide long-term, stable, high yield investments. Contact Casey Development, Ltd. to learn more about our commercial real estate development services in San Antonio.