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.
4 Best Commercial Real Estate Types 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 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.
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.
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.