Many people in Florida decide to invest in commercial real estate to generate income potential, and if you wish to do so, you have many different options to choose from. Some commercial real estate investments involve less risk than others, and some are statistically more likely than others to lead to significant returns.
How profitable a commercial real estate investment is going to be depends on market conditions and other variables. Commercial Property Advisors outline some of the commercial investment opportunities that may prove most profitable for individual investors.
1. Multifamily properties
Many people choose to invest in apartment buildings, condos or other multifamily properties as a means of generating passive income. Doing so gives you some flexibility in terms of how much wealth you generate through the endeavor because you have the option of raising the rent or lowering maintenance expenses, should the need arise.
2. Office buildings
Office buildings present another sound commercial real estate investment opportunity. Office buildings typically fall into one of three categories: Class A, B or C buildings. Class A buildings tend to be the nicest, most modern ones in a particular area. Class C buildings may be in less desirable areas or need more work to become usable, while Class B buildings fall somewhere in the middle.
3. Self-storage facilities
Many economists consider the self-storage industry to be recession-resistant. This is because economic downturns force many home and business owners to downsize, which creates more of a need for self-storage space.
As an individual investor, you may be looking for an option that gives you the biggest return for the smallest investment. If this is your goal, any of the above investment opportunities may be well worth considering.