You are currently viewing What is the Most Profitable Commercial Real Estate to Invest In?

What is the Most Profitable Commercial Real Estate to Invest In?

If you are looking online for the most profitable commercial real estate investment, the results you see will be very similar, the top results are literally saying the same thing as if they copied each other. The types of commercial real estate they list as being the most profitable involve real estate benefiting from:
  • High Number of Tenants
  • Triple Net Rents
  • High Growth Locations
So, as an investor you would say, “of course they are the most profitable, but I want to know more.” It is obvious you will want more information about the properties before you put your money into them. In this article, we do just that. We will break down the most profitable commercial real estate investment for you to consider.    Multifamily Real Estate is Very Profitable One of the most common but also highly profitable investment opportunities lies in a multi-family property. It supports various high margin models that we discuss below.
  • Mixed Use - With multifamily real estate, you can have retail and office tenants coexist within a development, which is very popular in the high growth areas.
  • Apartments & Condominiums - The rents across the country have risen at a historical rate and rarely suffer from compression, and when they do, it’s relatively short term.  Condominiums  have also continued to be strong performers in growth markets. Due to this, people are looking for high convenience and upscale amenities and are willing to pay a higher rent for such facilities.
  • Age Restricted CRE - There are communities which pay a premium for amenities and services that cater to an aging population.
  Office & Retail in Growing Cities When it comes to high growth areas, the most profitable CRE investment you make will come from getting in at the right time on office and retail properties—whether that’s during early stage development with strong anchor tenants or picking up a distressed asset with deferred maintenance.. In such cases, you will be able to generate equity over time while the area also grows, and there is often a value-add component when purchasing as-is properties needing an upgrade, which can compound its value. That said, with new development, you can enjoy efficient costs when implementing the innovative and unique components to the property to make it more desirable. In both cases, you will benefit from the long-term growth and development of the area as well as property upgrades.   Industrial & Warehousing There are several new hubs and centers for logistics being developed across the country to help with the transition to a more distributed logistics model which will help build flexibility for businesses selling physically or online. It will also provide convenience in terms of the availability and timely delivery of goods or services. There is a faster turnaround with warehousing properties--from the construction to lease up  which means quicker commercial real estate returns. The ROI on commercial real estate outperforms most other investment indices which has led to growing interest in properties that are under development.   Contact Us Now for More Information Phone: 314-588-1900