So, finally, you have decided to invest in commercial real estate. What next?
You purchase properties or wait; you “invest” in them. But, is it so easy? Nope.
Starting from understanding the fundamentals is the best way forward to investing in commercial real estate. One of the fundamentals is the different types present in the sector. Being aware of the various types of commercial real estate in Corpus Christi Tx benefits you in numerous ways.
Let us look in depth how it helps.
Assess your risk profile
Each type of real estate brings different risk factors into play. With sufficient knowledge of the variety in the market, you can align your risk appetite with the right avenue.
Make better decisions
Generally, better knowledge of the market means better decisions. It helps you understand the impact of external factors which impact your decision-making.
Helps in diversification
Oftentimes, we invest in a certain type of commercial estate, thanks to someone else’s advice. Profitable or not, diversifying your investment portfolio is a great move. For this, knowing the potential avenues for investment is a must.
Keep cash flow in check
Maintaining consistent cash flow while investing in commercial real estate is a challenge. But, by investing in its various types, you can manage the cash flow well.
Helps in understanding supply and demand
There are several factors whose impact overlaps across diverse types of real estate. Therefore, being up-to-date with different markets is of great value. They broaden one’s investment horizon, while still being in control.
So, I understand the benefits now, but how diverse is commercial real estate in Corpus Christi?
When you strike the right balance between commercial and residential real estate, they are known as multifamily properties. Any residential property with more than one unit of housing comes under this type. Likewise, this asset class is an ideal transition for investors from residential real estate to commercial.
Under this asset class, various properties are ranging from duplexes to skyscrapers.
- Duplex, Triplex, Quadplex
These are names for 2, 3, and 4 units of housing properties respectively. Largely preferred by those craving for the feel of owning a property, these are in demand, at all times.
Consistent cash flow and fewer vacancy periods make this a lucrative opportunity for all.
- Garden apartments
Salaried employees’ favorite — Garden apartments are great to start your investment portfolio in commercial real estate. These apartments are growing in demand in suburbs, thanks to them being an all-in-one solution for tenants.
With several amenities and lower overhead costs, garden apartments are always in demand. So, why not invest in this evergreen market?
- Midrise and Highrise apartments
Apart from the number of stories, there is rarely anything that differentiates these from each other. Often a one-time investment for tenants, these enjoy long-term commitments.
Hence, investing in these means you need not worry about vacancy periods or finding new tenants. Real estate companies in Corpus Christi Tx are showing special interest in these avenues. Leveraging the growing interest and making a couple of smart investments suffices. Ideally, enough to generate recurring income over a long period.
- Student housing
These are real estate properties that target the student audience. With the US housing the most number of international students, this market is evergreen.
Most of these are located near universities and colleges which means there is a constant demand. Student housing needs lesser overhead costs, making it a bankable venture for investors.
However, since the market is limited, investing in this asset class requires local and specialized knowledge.
Real estate companies in Corpus Christi thrive on dealing with office spaces. With increasing firms, the need for office spaces is bound to grow.
Office spaces may not be the ideal investment for first-timers as it is capital intensive. Also, this market is vulnerable to several external factors including politics.
On the flip side, office spaces are also a form of identity for firms. Hence, it is a game for the long run, yielding profits for years to come. With co-working spaces trending, the demand for office spaces is nowhere near saturation.
Associating with real estate companies or with substantive knowledge, being profitable in this market is possible.
If office spaces are for the longer run, they are certainly outmatched by the longevity of industrial properties. The voluminous size and volume of these properties may hamper the spirits of a new investor. But, these are the most profitable real estate properties by a mile.
Bulk warehouses, assembly units, factories, cold storage, each property is a long-term opportunity. Understanding this property class is a tough ask, but the potential for growth upon understanding is ineffable.
Again, industrial properties are capital intensive, but it provides for various sources of income.
Hotels and Resorts
2020 saw a steep decline in this market, but how long can one ignore hotels and resorts?
This is a highly valuable market that serves a wide range of audiences. From simple one-night rentals to full-service business travels, this market caters to everyone.
With international borders opening, the rise in demand is predictable. For investors, this is a golden opportunity to invest, as the market is currently in a bad position. With the only way forward is to rise, this market is currently one of the best avenues for investment.
From religious centers to amusement parks, special purpose real estate is diverse. Staying true to its name, properties under this umbrella are used for various purposes.
Whilst not all of them turn profitable, the ones that do, generate tons of revenue. A basic need for parking can be met with this asset class — Parking spaces. Vehicles need space to be parked, and why not serve that purpose for commercial benefit?
Special purposes come with different types of risk, so not a recommendation for investors to try their hand.
2021 is recovery and growth time, and here are our predictions for the year. Real estate in Corpus Christi Tx is moving towards the roof and it is a great time to jump on the bandwagon by associating with the best real estate companies in Corpus Christi, CLA Realtors. We have the experience and resources to help you fulfill all your commercial real estate investment needs.