Real estate has been flourishing for a long time. People invest in real estate because they need shelter. They also purchase properties for their businesses. Commercial properties are a good example.
Commercial real estate is any property that generates income or serves as a business. Retail, office, industrial, and multi-family spaces can be categorized. Commercial property investment has a number of advantages. This includes a stable cash flow, a high-yielding source of income for businesses, capital appreciation potential, and protection against the stock exchange.
Here are some business ideas you can start if you own commercial real estate:
1. Rental Property
You can make the most of your commercial property by turning it into a rental property. You can, for example, sign a contract to rent out your commercial property for a period of time. You can also seal a contract with a retailer to convert your property into an actual brick-and-mortar store. You can also lease your property to a leisure business for a spa, hotel, or restaurant. Finally, a healthcare business can use your commercial space to create a nursing home, hospital, or medical facility.
2. Apartment Building
You can easily see why some investors invest in large buildings. These properties, also known as multifamily, usually consist of several units that can accommodate several families. Renting out your apartment units is a great way to recoup the investment you made in an apartment complex. You can sign a contract for six months or one year. This can provide you with a steady source of income over the long term.
3. Self-Storage Complex
In recent years, the self-storage business has grown in popularity. Many people are searching for a place to temporarily store their items and goods. A self-storage facility is a great investment for commercial properties. It also doesn’t need regular maintenance. You don’t need to worry about toilets, walls, or floors. This type of commercial real estate investment can yield high returns over time.
4. Flex Space
Did you know that the flex space has become one of the most sought-after commercial properties? It’s not a Pilates or yoga studio. A flex space is a building with a few zones that include office, retail, and industrial space. It is a building that can accommodate all business needs. You can, therefore, close a deal for an SME that needs to operate a store, maintain an office, and maintain a storage facility in the same place. It may be an affordable option for the SME, but it could also be a profitable business for you.
5. Co-working Space
In recent years, remote working has grown in popularity. It has gained popularity during the COVID-19 pandemic. Some businesses use hybrid setups, while others adopt the work-from-home policy. Remote workers are now using coworking spaces as the restrictions on pandemics have been loosened. These spaces are preferred over coffee shops because they provide a conducive working environment. You should consider turning your commercial property into a collaborative workspace if you own it.
6. Coffee Shop
It’s impossible to deny the growth of coffee shops in the world. There are cafes in most urban areas in various countries. Coffee has become a culture, and almost everyone enjoys a hot cup of java or a cool frappe. You might consider turning a vacant commercial space into a small cafe. Be sure to do your research and due diligence before you take the plunge. A coffee shop is a profitable business that will yield high profits on your commercial property.
7. Industrial Building
Last but not least, you can turn your commercial property into an industrial area. Your commercial property could be used as a factory or warehouse for an industrial firm. You can, for example, work with a company that produces goods and items. Be sure to follow all local codes and ensure that your contract is clear.
You now know what types of businesses to invest in with your commercial property. You can choose from the suggestions above, such as a rental property, coworking space, or industrial building. Consider your specific property, as well as industry expertise, area of interest, financial resources, and other factors. You’ll then decide which business venture you want to start with your commercial property. Your commercial property will eventually give you a high return on investment.