Commercial property and rise of its use in years to come
Commercial property, in other words called investment or commercial property signifies lands and buildings made to produce profit in various ways. Under term of commercial property we find everything from hotels, resorts, shops, warehouses, malls to farm land and last but not least, specifically growing in last years-industrial property. As economy is moving forward and investments in building sector are increasing, more commercial buildings are being planned, built and then later sold or used for other commercial intentions.
Types of commercial properties
First thing we need to clarify is that commercial property is not just apartment rental. It is of course an excellent investment opportunity, but inside of commercial real estate sector there are many different types, we will name here just some of them:
- and much more
These are just couple of main commercial properties, each of them can be divided in more subcategories, so Industrial part of property can be divided in: Heavy manufacturing, Flex warehouse, Light Assembly, Bulk warehouse. Hotels are further divided in extended stay hotels, limited service hotels, Full service hotels and so on for each and any category.
Market for most of these is increasing and commercial buildings for sale are in demand more than ever.
Designing your real estate
People tend to buy with their eyes, so appearance of the buildings are extremely important. Commercial building design of course differs from residential building design. They both require specific architecture elements and aim of both is to fulfil the needs of tenants, either that be a company or a homeowner. When talking about commercial building design, we need to consider safety, storage room, meeting rooms and when we talk about hospitals or police stations, than things get even more complicated. All these things can be done by architects, designers and engineers who will make sure that you’re new commercial property is going to be fitting all the standards needed.
Commercial buildings trends to look for in 2019
The same time as Hotels, Offices and Industrial type of commercial properties are getting built more and are gaining bigger importance, retail type of properties are not so successful.
Walmart in US shut down 63 of its stores and unfortunately there is more to come. At the same time, commercial buildings for sale in rent and office sector is growing and in more demand than ever, especially in Europe.
Commercial buildings for sale and its potential
It is a great time to think about commercial properties and buildings and investments connected with them. Commercial properties have an approximate yearly return between 6 and 12 %, of course depending on the area, whilst single family properties are rising to 4% at its best. When commercial buildings go for sale there is also a more objective price evaluation and mostly we do not need to struggle with so called emotional pricing that happens more often than not in residential properties. Usually commercial properties are also in better shape, as they are in public eye, so it may be easier to take them on and work further with them than with most of residential homes. All in all, with a good plan, investment in commercial property can be fruitful for many of you out there.