The 7 Types of Commercial Real Estate Properties

Let’s be real for one second – Commercial Real Estate is, in my opinion, the greatest investment on earth. Based on my research (I’m still stacking cash to buy my first rental property), it really is a terrific investment when it comes to multiplying your money – a crucial facet one needs to achieve immense wealth.

Not only do they give solid ROI’s, but also it’s an incredible asset when it comes to protecting your wealth and generating Generational Wealth (pun attended)!!

With that being said, it’s important to discuss the different types of Commercial properties out there you can invest in.

1. MULTI-FAMILY

Generally, these types of properties are anything 5 units or more. The big Pro to these types of properties is the passive income it produces. Imagine, owning a 30-unit complex that produces cash flow for you every single month! With home ownership at an all-time low, renters are becoming more prevalent, choosing an apartment to live in rather than a house.

Let’s be real for one second – Commercial Real Estate is, in my opinion, the greatest investment on earth.

2. RETAIL

These properties typically house a restaurant, store, mom and pop shops or any of your department store types such as Target, Walmart, McDonald’s, etc.

3. OFFICE

Office buildings can be anything from those modern-looking skyscrapers downtown to the ramblers that hold a few tenants. These types of buildings can have multiple tenants or a single tenant. Examples of businesses that use Office buildings are: Dentists, Insurance, Financial Planning, Physical Therapy/Clinics and Marketing.

4. MIXED-USE

These kinds of Commercial properties are defined as part of the property being residential (generally some apartments on the top floor) with a retail and/or Office building at the bottom. More times than not, you’ll have some living spaces like condos or apartments on top while having a restaurant or small store on the bottom floor (as seen at the example below)

5. HOTEL

These property types are your typically hospitality sites that provide accommodations for guests or other tourists around the world. Generally, the two types of hotels are boutique or “non-flagged” or are “flagged”, which means they are part of a major chain (i.e. Hilton, Hyatt, Four Seasons, etc.).

6. INDUSTRIAL

Industrial Buildings normally contain industrial operations and are located just outside of urban areas. In most cases, they are seen as an individual unit, though there are many places called “Industrial Parks” where house more than one unit. They can usually be seen from major transportation areas.

7. SPECIAL PURPOSE

These type of properties are defined as “Special Purpose” simply because they do not fit in the traditional Commercial Real Estate spaces as mentioned above. Commercial Real Estate Investors still utilize these properties for great returns, dependent on the location and the demographic-base they’re trying to attract.

The following are prime examples of Special Purpose properties:

- Gas Stations

- Mobile Parks

- Self-Storages

- Amusement Parks

- Churches

- Golf Courses

If you really want to explode your cash, Multi-Family is the best way to go, because of the steady stream of cash flow you’ll receive each month. Industrial and Office Buildings – historically because of the dependable tenant-base – comes at a tie for 2nd. 

Where ever you would like to place your hard earn money, we carry a plethora of financing options for each property type from Conventional Financing to Hard Money.

We would love the opportunity to analyze and work on your loan scenarios, to have a hand in helping you reach your investment goals.

Always honored to serve you,

Michael

Michael is Co-Founder of Hudson Commercial Capital Lending, a family-owned and operated Commercial Loan Brokerage head quartered in Seattle, WA. He is known for helping numerous Real Estate Investors and Business Owners all over the United States in finding the best financing for their ventures. He carries a multitude of diverse life experiences, primarily as an ex-Hollywood Actor, acting alongside the likes of Tobey Maguire and Aaron Eckhart.