| Property investors have now turned their attention | | | | research firm, the price of apartment complexes rose |
| towards the lucrative deals presented by the | | | | by 26%, retail properties by 14%, industrial properties |
| commercial properties. This sudden interest is the | | | | by 21% and office buildings by 6%, in 2004. |
| result of the option to diversify your property | | | | Commercial property investment is very profitable |
| investment portfolio, along with a high income and | | | | but it is a complex business, as compared to |
| tax breaks. However, it is advisable to conduct a | | | | investment in residential properties. There are number |
| research before taking the plunge. | | | | of factors that affect the property evaluation of |
| Commercial properties include hotels, malls, medical | | | | commercial premises. It pays to study the market |
| centers, retail stores, business and industrial property. | | | | and tread cautiously. |
| These are operated for a profit from rental income | | | | Boom in commercial real estate property: |
| or capital gain. Some common commercial property | | | | Commercial real estate includes, but is not limited to, |
| types are: | | | | properties used for educational, medical, commercial |
| - Apartments and multi family units: These are the | | | | or industrial purpose. The properties are usable in |
| first choice of investors. Apartment financing and | | | | business or trade and can be sold or bought in the |
| management is very similar to that of residential | | | | real estate market. The improvement in the |
| properties. | | | | economy and growth in business ventures are |
| - Mobile home parks: These can be a profitable | | | | responsible for the revival of commercial real estate. |
| investment option especially if you own the land and | | | | Another important reason has been the continuous |
| sell the mobile homes. | | | | flow of new investment capital. This capital is sourced |
| - Retail properties: More than one tenant occupies the | | | | from people who seek higher returns from large |
| premises and it is utilized for retail transactions. | | | | investments. The areas that come under the |
| - Offices: This category includes suburban garden | | | | category of 'commercially profitable' carry a higher |
| offices, suburban high-rise offices, medical offices and | | | | evaluation, as compared to other properties in |
| central business district offices. | | | | developing areas. The rates for commercial real |
| - Mixed use properties: These properties are a | | | | estate properties are calculated differently from the |
| combination of all the above property types. | | | | method adopted for residential properties. |
| - Health care units: They include assisted living centers | | | | The rental yields are better for commercial properties |
| and congregate care centers and nursing homes. | | | | and the monthly cash flow is more than that of |
| - Hotels: The properties are categorized as either | | | | residential property investment, in the same area. |
| limited service or full service. | | | | The quoted expectation of returns depends on the |
| - Industrial premises: These properties can be used | | | | kind of business that would be transacted on the |
| solely for industrial purposes. | | | | premises. The profit from commercial real estate |
| - Self-storage units: The consumers use them for | | | | investments is definitely much higher than profit |
| personal storage or for lease. | | | | generated from investments in residential properties. |
| - Other specialties: These include oil change facilities | | | | Investment in commercial real estate is as lucrative |
| and gas stations. | | | | as investments in stocks and bonds. |
| According to a reputed New York based real estate | | | | |