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Commercial real estate

There are multiple types of commercial real estate, The most popular are:

  1. Offices
  2. Industrial
  3. Retail
  4. Hotels

Commercial real estate usually offers a higher annual return for several reasons.

  1. Prices of commercial properties are higher than residential properties because of their large size. The cost of industrial properties is usually in the millions range, which put them outside of the radar for retail investors.
  2. This type of real estate is mostly used by businesses. However, companies prefer to invest their capital in business development rather than purchasing a property because they can obtain a higher return on their capital.