Investing in Real Estate

What are the three types of Real Estate? Residential and commercial real estate include homes, apartments and condominiums, townhouses, duplexes and vacation properties. Commercial and industrial real estate includes business buildings and land. Farms, ranches and other working agricultural properties are also part of the real estate market. The types of property news available to investors vary greatly, depending on the type of use. If you are thinking about investing in Real Estate, here are some things to know.

Commercial real estate

While the retail sector is the most common type of commercial real estate, there are many other types of properties that fit this description. For example, single-tenant shopping centers can be divided into several subtypes, such as big-box centers and pad sites. Heavy manufacturing properties are heavily customized and usually house machinery manufacturers, while light assembly buildings are less custom and may be used for product assembly. In addition to retail and office space, many commercial properties are mixed-use, or multi-use.

One of the key differences between commercial and residential real estate is the length of the lease. While residential leases typically last from six to 12 months, commercial leases can last five to ten years. Those with longer lease terms benefit from lower turnover costs and vacancy rates and also signal a steady stream of cash flow. However, commercial real estate leases can be problematic in that they keep less desirable tenants for extended periods of time. To avoid these problems, make sure to follow the legal protections of the property’s lease agreement.

Industrial real estate

The industrial real estate market was once considered a niche asset class, but with more consumers shopping online, the industrial sector is growing in popularity. Today, retailers are competing for customers with same and two-day delivery, which requires distribution centers in most metro areas. This trend will continue through the 2020s, and the demand for industrial space will increase accordingly. But how can you make money investing in industrial real estate?

There are a few tips to consider.

Class A industrial buildings are usually newer structures. They feature high ceilings, modern utility and mechanical systems, and abundant parking. They typically attract higher-end tenants, resulting in low vacancy rates. They also tend to be the most expensive. Industrial properties in class A buildings tend to be the most upscale and expensive. While class A industrial properties can be expensive, they are also more desirable for larger corporate tenants. In addition, class A properties tend to be near major transportation routes.

Research and development real estate

The scope of research and development in real estate is enormous. It paves the way for success and sustainable growth in the entire real estate industry. Research can help determine the best use of land, the feasibility of a project, and the marketability of a product. It also helps in ensuring the coordination of plans during the entire development process. The results of the research and development can also lead to better management and execution of recommendations.

According to Savills India, the demand for life sciences R&D in India is estimated at 96 million sq. ft. in the next decade. In addition, it holds the potential of attracting $18 billion in private equity institutional investment. India is well-positioned to become a world leader in the life sciences industry, and R&D real estate is a high-potential asset class. The industry is poised for explosive growth, and this sector will likely provide an attractive investment opportunity for both private equity funds and investors.