THE ULTIMATE INVESTORS GUIDE TO BUYING A NEW COMMERCIAL PROPERTY

Every real estate investor has commercial real estate at the top of their list and its for a good reason. Over the last few years, it has been proven that commercial real estate is a very profitable source of investment. However, if you decide to invest in commercial real estate you should know the ratio of increased rewards is increased responsibility. Commercial real estate is a hands on investment.

Unlike single family properties (homes), commercial real estate is number crushing and therefor requires more from the investor of the property. With the right effort and dedication you can also own and manage a commercial property. 

THE CITY OF OSHAWA

The city of Oshawa has a very developed community with divers group of people living in peace and harmony. The real estate scene in Oshawa is booming and a lot of new people move into the city to acquire a piece of property for business purposes or to reside. Oshawa real estate lawyer will assist consult you when you decide to buy a commercial or residential real estate.

DEFINITION OF COMMERCIAL PROPERTY

Commercial property can simply be defined as any piece of real estate property used for business purposes. The main purpose of commercial real estate property is to generate profits. Examples of commercial real estate properties are; strip malls, hospitals and other health facilities, office spaces, industrial warehouses and many more. 

 

THE TYPES OF COMMERCIAL PROPERTY

There are five types of commercial properties. These include; Office spaces, multifamily property, retail, hospitality and industrial spaces. 

However, commercial office spaces can further be categorised into different classes. Class A office spaces are considered more premium and new. The prices of these office spaces are very competitive. Class B office spaces unlike Class A have less competitive prices and its usually renovated after purchase. Class C office spaces are a little run down and require immediate maintenance. These types of buildings are usually more than 20 years old. 

Industrial commercial real estate spaces are usually factories, large business warehouses, plants. These places are used in the manufacturing and distribution of products. 

The hospitality side of commercial real estate refers to hotel resorts, motels and short term rentals. Multi family real estate is commonly referred to as apartment complexes. Multi family real estate usually contain 5 or more units to contain families or individuals. Niro law real estate lawyers can assist you in the process of acquiring a residential or commercial real estate property.

BUYING COMMERCIAL PROPERTIES VS. BUYING RESIDENTIAL PROPERTIES

Commercial properties are considered as sound investments. The amount work that goes into customising spaces for tenants, makes this a very high investment. However, the returns in this type of investment is very high. 

Commercial properties are usually more straight forward price transactions unlike residential properties. When dealing with commercial real estate properties, factors such as emotional attachment is avoided. It is strictly business. Investing in a commercial real estate property, means you have the option of acquiring a triple net lease. This means that, the risk associated with the property will be dealt with by the leasing business. This option however, is not available for residential real estate investment.