Thursday, November 6, 2008

commercial real estate investment

Commercial real estate investment refers to the class of real estate that is primarily meant for investing money for profits later on. Examples of such properties include:

• Restaurants (including franchises)

• Retail

• Office buildings

• Self-storage (Mini-storage) / industrial

• Strip malls

• Hotels (also called "hospitality")

• Multi-family / apartment buildings

Why invest in commercial property?

Unlike residential real estate, Commercial real estate investment is evaluated, bought, and sold based purely on numbers - on a set of factors that describe what kind of return on investment you can expect with the property. Most Commercial real estate investment is expected to make a return for you on an on-going (monthly) basis. With the retail boom and increasing return on investment in the commercial real estate market, the value of commercial real estate have grown by leaps and bounds, particularly, in the commercial areas, where the local retail shops and shopping complexes have been replaced by huge and swanky malls.