Commercial Real Estate
What is it?
Commercial real estate (CRE) includes any property used to generate income through business activities. Unlike residential, CRE typically involves larger tenants, longer leases, and a more hands-on management approach or third-party oversight. These properties usually require more capital but can offer strong returns and professional management opportunities.
Multi-Family (5+ units)
Once a residential property exceeds four units, it is classified as commercial. These properties include apartment complexes and large townhome communities.
Office Buildings
Properties used for professional services, ranging from small suburban offices to downtown high-rises. Tenants typically sign long-term leases.
Retail
Spaces like strip malls, standalone stores, and shopping centers. Tenants include shops, restaurants, and service providers.
Industrial
Includes warehouses, manufacturing plants, and distribution centers. Often located near major transit hubs and designed for logistics and production.
Self-Storage
Facilities offering storage units for personal or business use. These properties typically have lower maintenance costs and relatively stable demand.
Hotels
Lodging facilities ranging from budget motels to luxury resorts. This segment can be volatile, often influenced by economic trends and tourism.
Mobile Home Parks
Owners lease land to mobile homeowners. Known for low operational costs and high cap rates, these parks often offer consistent cash flow.
Benefits in Investing
Higher Income Potential – CRE often delivers stronger cash flow.
Longer Lease Terms – Multi-year contracts reduce tenant turnover.
Diversification – You’re not reliant on a single tenant or market.
Professional Tenants – Businesses tend to be more financially stable.
Scalability – Easier to grow your portfolio with fewer, larger properties.
Final Thoughts
Commercial real estate can deliver powerful returns and scale fast—but it requires expertise. With proper due diligence and professional management, CRE can be a game-changing wealth-building strategy.