A property that is exclusively used for business-related purposes rather than providing living space provides a workspace is termed as commercial real estate. Residential real estate constitutes the area that is used for living space rather than a workspace. To generate income, commercial real estate is leased to the tenants, who can open a single store or a huge shopping center. There are various CRE St Louis, that is an attractive option to invest upon.

Some categories that are included in commercial real estate are-

-Office space

– Hotels and resorts

– Strip malls

– restaurants

– Healthcare facilities

The two primary categories of Real-estate constitute commercial real estate property and residential real estate property.

Here are some of the different type of commercial real estate-

Multifamily properties

Multifamily properties play as a middle link between commercial and residential real estate properties. The general purpose of the multifamily property is for investment but it can serve the purpose of residency primarily.

Commercial property for office space

Depending upon their sizes, the commercial Real estate has been categorized into the following categories-

  • ClassA buildings are the best buildings for office space, they are well managed and recently built. The infrastructure of the building is good and they are at a very good location, the price of the ClassA buildings for office space is the highest.
  • ClassB buildings are less expensive and less competitive than ClassA buildings, they are older buildings and the location is a little desirable. Investors target these buildings for restoration
  • ClassC buildings are the oldest buildings, in a remote location and need a lot of maintenance.

Central business district-  The office buildings that are in the heart of the city is located in the Central business district, these buildings cost a fortune and are usually found in the downtown of metropolitan cities.

Suburban office buildings- These buildings are smaller in stature and constitute mid-rise buildings, located outside of a city center.

Properties for retail

Shopping/Strip centers- Strip centers or strip centers might not necessarily contain an anchor tenant, they are smaller rental properties, an anchor tenant serves to lure the customers into the property, Walmart, Public or home depot are some of the best examples of the anchor tenants.

Community retail centers-  The community retail centers range between 150,000-350,000 square feet, community centers such as the grocery stores and drug stores are occupied by multiple anchors, finding a restaurant in the community retail center is easy.

  • A Power center

Smaller, inline retail stores constitute a power center, they can be distinguished due to the presence of some major box retailers such as Walmart, staples, etc.

  • Regional malls

Regional malls constitute many big stores and cover an area of around 400,000-200,00,00 sq, feet.

Hotels

There are various types of commercial establishments of hotels, the full-service hotels are the mainstream hotels such as the Marriott and the Ritz Carlton, they are located near the district areas and provide premium services from their customers. The limited-service hotels are basically boutiques, which offer the least services to their customers and are smaller in size. The extended stay hotels comprise larger rooms that are for those who would like to stay for a long duration of time.

Commercial real estate investment

Investing in commercial estate is a very lucrative decision, as the scope for good returns is attractive, the people who are interested to invest in commercial real estate can make money by appreciation when they sell their property, but most of the revenue is generated through tenants. The people interested in investing in commercial real estate can either invest directly or indirectly, if invested directly, the investor has to keep in mind that the commercial real estate sector is a high-risk and high-return real estate investment, such an investor should be a high- net worth individual. Indirect investment in real estate is done through ownership of various market securities such as real estate investment trusts and exchange-traded funds that invest in the stocks related to the commercial property investment, or by investing in the banks or the realtors that cater to the commercial real estate market.

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