These five primary classifications may further be characterized as Class A, B, or C. It would certainly be difficult to sell a home next door to a distribution facility, but other warehousing uses wouldn’t mind it. This code is intended to keep property types of similar use clustered together, which creates commercial districts and residential districts.Īnother intent of this zoning is to determine where heavy manufacturing - an often polluting and noisy industry - may locate. In many cities and townships across America, commercial real estate has its own zoning code. In this guide to passive real estate investing, we’ll be covering five primary asset types of commercial real estate: multifamily, office, industrial, retail, and hospitality.Ĭommercial Real Estate Zoning and Classifications Looking through the lens of an investor, commercial real estate can encompass any kind of property, which includes land (though we won’t cover that here), which is income-producing, or has the potential to do so. Included in commercial real estate are retailers, office spaces, hotels (and often short-term rentals), shopping malls, restaurants, hospitals, and convenience stores. This category of real estate ranges from small neighborhood coffee shops to massive city skylines. There is a slight exception, though, with multifamily and hospitality real estate, but those are still a commercial use.Ĭommercial real estate may be owner-occupied, meaning the owner of the property operates their business at that location, or may be leased to tenants who wish to live / work there. Simply put: pretty much anywhere you wouldn’t rest your head at night as the owner. Whether you’re looking to learn so you can run your own commercial real estate deals, or you’re just interested in building up your passive income, here’s our guide on how to passively invest in commercial real estate.Ĭommercial Real Estate (CRE) is defined as any property used primarily for business purposes. Once you understand how to passively invest in commercial real estate, you’re probably going to sell off your residential portfolio. The amount of capital a group can raise ultimately determines whether or not they can move forward on purchasing or developing any given project.Īnd their investment is completely passive - aside from contributing cash, there’s no further expectation to acquire, manage, or dispose of the asset for an investor. Not only is real estate a tangible asset, but you can utilize leverage to purchase above and beyond what you could afford alone.Įquity makes the world of commercial real estate investing go ‘round. There are no other investment vehicles like it. It’s no secret that real estate offers one of the best wealth-building opportunities today.
0 Comments
Leave a Reply. |