Commercial, Industrial, and Special Purpose Real Estate


What exactly are the three types of real estate? Commercial, Industrial, and Special purpose are just a few of the common types of Real Estate. Depending on your preferences, you might want to look into the characteristics of Commercial, Industrial, or Special purpose Real Estate, or both. There are many benefits to investing in each type, and we’ll discuss some of those advantages as well. For more information, read on! (Update: This article has been updated to include information about Industrial Real Estate).

Commercial real estate

Compared to residential real estate, commercial real estate requires a larger up-front investment, but the rate of return is usually higher. The leases typically involve triple-net leases, which place most responsibility for the costs on the leasing tenant. As such, many investors prefer to work with businesses rather than individuals. The tenants in these types of leases tend to be incomeproducing businesses, which tend to pay rent on time. This is a great advantage for investors because the tenants typically have lower vacancies than do individual home buyers.

Traditionally, commercial real estate has been defined as property used primarily for business purposes. It may include buildings for office use, shopping malls, warehouses, and more. In addition to offices, commercial property can include bakeries and retail stores. In most cases, commercial real estate companies earn most of their revenue through rent collections. Here’s how to tell if a building is commercial-grade. It may be better to buy a property that is in prime condition than one that is falling apart.


Industrial real estate

Class A industrial property is the highest-quality, most expensive type of industrial property. These properties are often located off the highway, offer multiple loading docks, and have ample parking. They are typically newer and offer modern amenities. These properties are typically favored by larger corporations. They also have a low vacancy rate, which is beneficial to those who need high-quality space. Whether you are in need of space for your business or are simply looking to rent out space, industrial real estate is an excellent investment option.

Special purpose real estate

How do you determine a special purpose property’s value? To know its value, it’s important to understand what the price ranges in your neighborhood are, as well as how much comparable properties sold for. Proper research will help you to identify the properties that have the highest price tags in the area, and the properties that are bargains. Taking an average of local valuations may not give you the definitive answer. Here are some guidelines.


When financing your project, consider whether it qualifies for a special purpose mortgage. Some special purpose properties may fall outside of traditional mortgage products, as they generate revenue from a combination of sources. Some special purpose properties may face heightened competition and seasonal income. In such cases, it’s a good idea to work with a specialty lender, such as MORTGAGE CAPITAL INVESTMENT. We can find flexible terms and competitive rates for your specific needs.


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