Generating passive income as a real estate investor can be a lucrative business model. When it comes to commercial real estate, you can lease multifamily homes or office and commercial space to companies.
According to CNBC, businesses have more office space than they can sell. When investing in a commercial building, you must consider the current real estate market.
Offices for businesses or freelance workers
While office space may be difficult to sell right now, you may be able to use that to your advantage. There are various ways to lease office space. You can lease to a company or multiple offices to different entrepreneurs. Nowadays, many workers like the idea of flexible workspaces. You can have communal spaces for all workers or offices that people can rent by the day or week. When looking for office space, keep in mind that you may be able to demand a substantial discount because of the market.
Laboratories and medical offices
Most investors have an easier time leasing laboratories and medical offices. The medical industry will never disappear. Scientists and doctors have a stable stream of income to pay their bills and to afford the property you lease to them. When investing in medical offices, you must remember that sellers can demand a higher price than other types of office space.
Leasing space to working professionals can generate a passive income, similar to leasing a multifamily property. However, when you lease office space, you must consider which types of offices can generate the most income.
