Types of commercial real estate: An overview

While investing in commercial real estate has often been touted as one of the best financial moves that investors can make, Gene Bernshtam explains that before doing so, investors need to boost their investment knowledge before making a move.

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On that note, Gene Bernshtam lists three types of commercial real estate as a basic launching point for people looking to invest.

Retail: Retail properties are leased on a triple-net basis. However, the duration of the lease isn’t as long as other properties on this list, which can either be good or bad. One benefit of a short-term lease is property owners can increase their rates if the rates increase in the area. This is something owners with long-lease properties can’t do. However, for retail properties to succeed financially, it should be in a prime location, adds Gene Bernshtam.

Industrial: Warehouses, factories, R&D facilities, and other spaces where industrial operations take place, fall under this category. Industrial properties are very lucrative and stable; however, owners must be extremely well-versed with legal aspects of the real estate revolving around environmental and zoning provisions.

Office: Office space is one of the most profitable and stable commercial real estate investments, Gene Bernshtam explains. Leases exceed five years, which means steady cash flow for property owners. Like retail properties, office spaces are leased on a triple-net basis.

Gene Bernshtam is a commercial real estate and development professional who currently heads Avalon Holdings LLC, which specializes in apartment buildings and mixed-use properties. Outside of work, he enjoys collecting cars. For similar reads, visit this blog.

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