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Real Estate 101: Commercial Real Estate Investment Properties in Melbourne FL

Real estate has three types namely residential, industrial and commercial. Residential real estate properties are residential houses, condominiums and apartments, while industrial real estate properties are factories, laboratories and warehouses used in manufacturing goods. Commercial real estate refers to a type of property intended business purposes only, and commercial properties are leased out for work space. Some of the examples of commercial estate properties are office space, restaurants, convenience stores, hotels, strip malls and shopping centers.

Typically, the investor owns the building of the commercial real estate, allowing it to be leased and then gain revenue from collecting a rental fee from each retailer who operates the business. Commercial real estate properties’ lease rate is annually paid and the amount is based on square foot. The most common terms of leasing a commercial real estate property is from one year up to ten years, with retail and office spaces with an average of five to ten years. Tenants who occupy larger spaces have generally loner term of leases compared to those who occupy smaller spaces who have shorter term leases. Both the tenant and the landlord have various levels of responsibilities in leasing, and the four types of commercial property leases are single net lease, double-net lease, triple-net lease and gross lease.

The classifications of commercial real estate properties include class A for the best buildings in terms of location, age, quality and aesthetics, class B for older and not as good as class A , and class C which are the oldest, usually over twenty years of age found in less attractive areas, needing extra maintenance. Those who are newbies in business can financially benefit if they own a work space rather than lease it, and anyone can invest in a commercial real estate property with the proper knowledge about its financial, legal and regulatory aspects, or who can employ people who have these qualities to manage your investment. If you want to invest directly, commercial real estate firms have a wide range of listings, and these can be found in websites. Indirect commercial real estate investments can also be done with real estate investment trusts that works like mutual fund, stocks or bonds, if you don not want the hassle of directly owning one.
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Investors can generate return of investments through rentals. Commercial real estate investors can also break down the spaces into smaller units rather than sell it as a whole in order to generate higher return of investments. If you are looking for a commercial real estate property, we are here to assist you get the best for you. Feel free to contact us anytime if you want a property in Melbourne Fl, so we can help you scout the best commercial real estate property just right for you.Options – Getting Started & Next Steps