First-time and even seasoned CRE investors look into the property types of commercial real estate before they place capital into it. No matter if you’re into active or passive investing, understanding the four classes of CRE properties is crucial for you to achieve your financial goals.
Before we go deeper into this two-part series of knowing the main types of properties in commercial real estate, let’s look into what CRE is about.
Commercial real estate (CRE) is broadly defined as property acquired mainly for business and to generate active or passive income. This type of investment is classified into 4 primary types of commercial real estate property.
As an investor trying to build wealth, understanding these property types is key to knowing what specific investment you’d want to pursue.
Industrial properties are small buildings or big warehouses that are designed for a rental. These cover a wide range in terms of size and function. Here are some examples:
Further, there are 3 classes of an industrial space:
There are two major categories under this type of CRE property; urban and suburban.
Aside from being classified based on location, office buildings are ranked based on a 3-tier system.
In the second part of this blog series, we’ll learn more about retail and multifamily units. Knowing the various types of properties will educate commercial real estate investors like you and help you identify what deals are worthy of your investment.
To successfully sell or buy a CRE property, you need help from trusted partners who have a unique understanding of the market and the industry. Contact the Trajan Team—your partner in success.