what is the best type of commercial real estate to buy as a us citizen anywhere between 500,000 to 3 million

In Buying Property - Asked by First L. - Nov 1, 2012
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Answer(s)

Robert B.
Broker/Agent
Houston, TX

There are several factors in determining the right commercial investment, however, don't forget to analyze an "exit strategy" as well as the "entrance strategy"--very important.

Nov 2, 2012
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Tony T.
Broker/Agent
Laguna Hills, CA

Don't forget to consider commercial land. There is only a fixed supply of land and they aren't making it anymore.

Nov 2, 2012
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Vince S.
Broker/Agent
San Jose, CA

The best type to me is a multi-unit residential property or apartment in a good location and in a well populated city where there are many renters.

Nov 2, 2012
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Tabatha D.
Broker/Agent
Russellville, AR

Strip malls, compared to apartments your tenants are usually long term, and in most cases a stronger return on your investment. Also consider location of where to buy!

Nov 4, 2012
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Rob B.
Chandler, AZ

First L.....You can and will get a lot of answers to this question.
As a US Citizen you have many choices to invest in America, still the finest country in the history of the world.
You investment choices will be based on the risk of the investment. The more risk that you take with your commercial real estate investment, the more return you can expect. For example you could invest in a commercial property that is leased by a national credit tenant, in a class A location and get a return of 3% to 6%. (This is referred to as the canalization rate return on your investment).
Or, on the other end of the spectrum of commercial real estate, you may be able to invest in a property in a Class C location, that requires substantial management and care, and great attention to keeping the property full; and with great success get as much as a 10%+ return on your capital. (Again this is referred to as the cap rate).
The best advice is to find a broker with whom you can establish trust. Explain to that broker what you are attempting to accomplish with your investment. Give him or her all the details of where, what and how in your explanation of a goal.
He or she can then search for a property that fits your needs. Then should then receive "the best" answer to your question.
Good luck and onward and upward!
Rob Baird
rob@capratecommercial.com

Nov 5, 2012
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Chris F.
Broker/Agent
Salem, OR

First question you need to ask yourself is "what are your motivations?" Do you want more or less management, more or less risk, what level of return are you looking for, how long do you want to hold it, what do you expect from the investment? There are a lot of options out there, and it will depend on what your short and long term goals are, and how best to meet them. Each type of investment offers something a little different, so its not an easy question.

Nov 5, 2012
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JIM M.
Broker/Agent
Islamorada, FL

Try and find area that has very strict Development Rules in their Comp Plan. This will give existing properties a stronger value, overall. Of course there are other variables that play into any commercial as mentioned above, exit strategy and entry strategy.
Monroe County has restrictive LDR'S and Comp Plan, but key is due Diligence on FEMMA issues Insurance in Monroe County.

Nov 5, 2012
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Louis J.
Lender/Mortgage Broker
Chicago, IL

The best type of commercial real estate depends on your goals. MultiFamily is the most conservative and the safest bet, especially when you buy in a good area. Many people look for high cap rates. Cap rates over 8 or 9 mean there is a greater risk, and therefore potetial greater reward. Safe ininvestments generally have a 6 to 7 cap rate. Also financing is much more readily available for multifamily than any other commercial properties.

Nov 6, 2012
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Dalip S R.
Broker/Agent
Lumberton, TX

Multifamily properties and commercial land are conciderd smart investments. Of course you have to be familiar with the area, zoning issues and competition.Commercial strip centers with high occupency is also a smart investment. Most important Location Location Location.......

Nov 6, 2012
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James B.
Broker/Agent
The Colony, TX

You have heard a lot of answers and most are correct. One type of property that is overlooked and is usually the safest investment with tenant longivity and a great cap rate. Multi-tenant office warehouse, it offers you the most bang for your dollar with the least amount of maintance. Look for cities with lots of manufacturing or military contracts. good luck

Nov 9, 2012
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Albert S.
Broker/Agent
Arcadia, CA

There are so many variables relating to your question, but the general consensus is any property that generates a good cap rate, from 7% and up, with passive residual income, low property taxes, and location, location, location!

Nov 15, 2012
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Henry P.
Broker/Agent
New York, NY

The best commercial real estate is a multi family building that is close to public transportation it's easy to rent and you get better rents then a building that is not close to public transportation.

Dec 6, 2012
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