Multifamily properties, office buildings, shopping centers, and single-tenant buildings all fall into different categories. Learn how to identify each one to make an informed real estate decision. You can also purchase properties within these categories. Read on to learn more. We’ll discuss each one in turn! Listed below are the six most common types of real estate, along with how to identify each one. There are several types of each, and each has its own characteristics.
Multifamily properties
If you are considering buying a real estate property, there are a few factors to consider before purchasing a multifamily property. Although it is more difficult to buy multifamily properties than single-family homes, you should still do your due diligence and research thoroughly. Once you’ve decided to buy a multifamily property, you’ll need to estimate the mortgage payment. You should also consider how much money you can afford to invest in the property.
Single-tenant buildings
A single-tenant building in real estate is a commercial property that is occupied solely by one tenant. These buildings are commonly occupied by national-credit-rated tenants who have signed triple-net leases. Tenants often include 7-Eleven, Dutch Brother’s and AutoZone. These properties tend to have low maintenance needs, as the tenant will typically be responsible for property insurance and real estate taxes.
Office buildings
There are different classifications for office buildings, including Class A, B, and C. Each one represents a different level of quality and price. While quality does vary greatly from place to place, most office buildings fall into one of these categories. Class A buildings often have premium finishes and amenities. These properties command the highest rents. Class B buildings are more moderately priced and generally have good amenities. While they are not as high quality as Class A properties, they are still a good choice for office space.
Shopping centers
Shopping centers are properties where the owner can lease space to a single tenant or multiple tenants. They are often divided into different types, depending on the size of the space and the tenants. A shopping center may be divided into three main categories: power centers, community retail centers, and multi-tenant buildings. Multi-tenant buildings may be divided into smaller parcels to offer flexibility and increased visibility. Smart shopping center developers and investors are spin-offing parcels from existing anchor tenants, often subdividing and arbitraging higher cap rates.
Industrial parks
Industrial parks are often constructed next to major shipping hubs, such as Los Angeles and Long Beach, and can have complementary features and services. Ports are convenient for transferring finished products and raw materials, while industrial parks also have warehouses for storing them. In addition to the convenience of proximity to major transportation hubs, industrial parks often have low-income housing within the vicinity. The potential for excess traffic and noise also drives down residential prices.
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