There are so many opportunities for significant financial return in the world of commercial real estate. While people oftentimes associate commercial real estate with shopping centers or apartment complexes, there are so many other types of commercial real estate investments that oftentimes get overlooked. In the right area, investing in these commercial ventures can bring significant value not only to the community, but also your portfolio. In today’s blog, we explore five commonly overlooked commercial real estate investment opportunities.
Successful And Overlooked Commercial Real Estate Investments
Before we dive into the list, it’s important to remember that you should do your due diligence on a property and the surrounding area before moving forward with a plan for commercial real estate acquisition. All of the following types of investments can be very opportunistic, but if they aren’t the right fit for the area, you can end up underwater on your investment. To prevent this, we recommend working with a title service company like Commercial Partners who can help you better understand the factors that could influence your investment and ensure there are no surprises when it comes to property acquisition.
With that said, here’s a look at five oft-overlooked commercial real estate investment opportunities that could prove lucrative in the right situation.
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Storage Units - Self-storage units are becoming increasingly popular among commercial investors for many reasons. People need places to store their things, and it’s not always feasible to store a boat, truck or other items at your residence. Self-storage units give people that extra space. Investors collect money every month, just like you would with an apartment or condominium, but the maintenance tends to be much lower with a storage facility.
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Office Spaces - Office spaces were popular investment opportunities until the COVID-19 pandemic hit. Nowadays it seems like office spaces are starting to fill back up, and you can likely get a much better deal now that more people companies are going partially or fully remote. A thorough market analysis is warranted when considering investing in office space, but timing this market can be incredibly lucrative.
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Warehouses - Companies also need space to store goods or equipment, and leasing out your warehouse can provide them with this space. Similar to self-storage units, warehouses typically have incredibly low maintenance needs, and you can oftentimes get a business to agree to a much longer lease, ensuring you will have passive income for an extended period.
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Parking Structures - There are nearly 300 million vehicles on the road in the United States, and they all need a place to park. In larger cities and metropolitan areas, drivers are willing to pay to park their cars near their destination, so investing in a parking ramp or garage can be a great opportunity. A close analysis of the parking demands of your area can allow you to implement dynamic pricing models to maximize the returns on your investment.
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Cell Towers - Arguably the most important aspect on the consumer side when choosing a cell phone carrier is the availability of coverage in the areas you travel most. Because of this, cell coverage providers are always looking to improve their ability to provide coverage to more areas of the country, and they do this by building cell towers, oftentimes in rural areas. Allowing easement access and cell tower construction on your property can be a great way to earn guaranteed passive income for years. If you are going to lease property to a government or business provider, let the team at Commercial Partners draft the easement agreement so that your interests are protected when entities and employees use your property to facilitate their business.
If you want to learn more about any of the above investments, or you want assistance getting the ball rolling on your latest commercial investment, reach out to the team at Commercial Partners today at (612) 337-2470.