It’s no secret that real estate can a be lucrative industry, but when looking to invest in real estate, which is the better route to take commercial real estate or residential real estate? And why should you invest?
As a commercial real estate company we are a little bias as to which is better. In this blog post we are going to go through some frequently asked questions we get when clients are looking to invest in commercial real estate.
What qualifies as commercial Real Estate?
Investment or income properties qualify as commercial real estate. Typically the property is leased out for business and/or retail purposes. Commercial real estate can also be land that can be developed for commercial use, such as a strip mall, apartment complex, or office building.
Types of commercial real estate to invest in.
Land or commercial development opportunities, offices, retail, multifamily/apartments, hotels, warehouses. When buying real estate it’s also good to take into consideration the types of clients and/or businesses you are wanting to lease your space out to.
Commercial real estate vs residential real estate?
Commercial real estate has the opportunity for higher income. Commercial real estate properties often keep their worth longer than residential properties do. Location is also a big factor when comparing the two. When investing in commercial real estate you have to take into consideration the type of property you will be investing in and the type of demographic you are trying to reach. For example a property in downtown Columbia would be more profitable for an office space than one in more rural parts of the area.
Why should I work with a team instead of independently?
Investing in real estate is a great way to build wealth. One of the services we offer is property management. When you invest in real estate it is important to either know about property management or hire a property manager who knows the ins and outs of keeping a successful property up and running. Although investing in commercial real estate can be rewarding it can also be a headache if you don’t have the expertise going into it.
Be prepared for risk
When starting anything new you have to assess the risk factor for whether or not it’s worth it. Real estate is no different. Yes it can be rewarding, but real estate can be expensive. It is true that we are still recovering from the effects of the pandemic but the economy as well as the real estate industry continues to be on the mend. Typically commercial real estate can be a big investment up front. Then similar to renting a house, if you do not find a tenant to rent out your space consistently you could end up having to pay. The property you bought as an investment might end up being a money pit.
We at DeWees Real Estate Group are big fans of commercial real estate. Commercial does require a larger investment and sometimes when buying land can be a big undertaking but the reward… and the commission is well worth it. Want to see what we have for sale click here! Want to learn more about the services we offer click here!
About DeWees Real Estate Group
DeWees Real Estate Group is a full-service real estate firm located in Columbia, SC and Akron, OH specializing in acquisitions, leasing, and management for all property types. We utilize state of the art software and marketing materials to ensure our listings are getting the highest and best exposure available in the marketplace.
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