Commercial Real Estate Properties to Invest In Post-Pandemic

The COVID-19 pandemic of 2020 did a huge number on the American real estate market, just a couple of years after our tenuous recovery from the Great Recession of ’08. Within a span of just a few months, FHA loan requirements got tighter, lender criteria for loans have gone up, and investments have depreciated in general.

But there’s a silver lining: for qualified property owners, mortgage rates are at a historic low, which means that you could start expanding your real estate investments by borrowing against equity of existing properties while ensuring a steady income stream from your existing rentals.

Yes, the human toll of the pandemic has been devastating, but the American people endure, and with cities opening back up, it’s the best time to invest in commercial real estate and help people get back on their feet while earning a pretty penny in the process.

There are different types of commercial real estate options that you can invest in, and here’s a quick breakdown of those types so you can have an idea of where to put your money:

Multifamily

This type of property usually consists of apartment buildings and high-rise condominium units. This is usually the perfect investment choice for first-time real estate investors looking to leverage multifamily loans to purchase an apartment building and turn it into a revenue-generating asset.

However, bear in mind that multifamily loans usually have shorter lease terms than other types of commercial real estate loans, but with lower mortgage rates and many people looking to relocate after the pandemic, running your own apartment building might just be a lucrative investment.

Retail

With cities reopening after the initial outbreak, retail buildings are again becoming prime choices for real estate investors. These are properties that range from community centers, strip malls, bank buildings, brick-and-mortar stores, and restaurants. Often, these types of properties are located in the center of urban areas, and can range in size from 5,000 to up to 350,000 square feet.

Office

Before the pandemic, office space was the most popular and lucrative commercial real estate investments an investor can make. But during the pandemic, many businesses shuttered and were forced to re-evaluate whether or not they should have a brick-and-mortar location in the first place.

However, with lockdowns ending in many places in the world, office spaces are back in as the choice investment for people looking to make a steady income from corporate renters. There are three types of office space categories that you can choose from:

Type A

These are commercial real estate properties that are either brand-new or extensively renovated. It’s located at prime locations, with easy access to major amenities and transportation hubs. Usually managed by professional real estate companies.

Type B

These are commercial real estate properties that are relatively older than Type A buildings and usually require a healthy capital investment for them to be lucrative. These are usually well-maintained but might require minor renovation.

Type C

These are commercial real estate properties that are usually buildings in poor locations. Type C properties are poorly-maintained, out-of-date, and with high vacancy rates. These types of properties require huge amounts of capital investments and is better suited for major redevelopment projects.

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