{"id":952,"date":"2023-02-08T16:26:00","date_gmt":"2023-02-08T16:26:00","guid":{"rendered":"https:\/\/moneymade.wpenginepowered.com\/?p=952"},"modified":"2025-06-03T19:03:40","modified_gmt":"2025-06-03T19:03:40","slug":"how-to-get-into-commercial-real-estate","status":"publish","type":"post","link":"https:\/\/moneymade.io\/learn\/articles\/how-to-get-into-commercial-real-estate\/","title":{"rendered":"How to Get Into Commercial Real Estate"},"content":{"rendered":"\n<p><strong><em>Commercial real estate outperforms the S&amp;P and pays investors passive income. Here\u2019s how to get in on the action.<\/em><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Money_Made_Commercial_Real_Estate_MO_2beac5d3d2.png\" alt=\"How to Get Into Commercial Real Estate in 2023\"\/><\/figure>\n\n\n\n<p>Despite popular belief, commercial real estate (CRE) investing isn&#8217;t only for the upper class. It\u2019s actually quite the opposite\u2014a gold mine in a regular investor&#8217;s diversified portfolio.<\/p>\n\n\n\n<p>Cash-flowing assets and strong price appreciation are a deadly combo. CRE provides predictable, steady returns amid market fluctuations and recessions.<\/p>\n\n\n\n<p>While the S&amp;P&nbsp;500 has averaged around 9.6% annual returns in the last 25&nbsp;years, commercial real estate outperformed it, yielding average annualized returns of 10.3% despite the economic turmoil in&nbsp;2008 and&nbsp;2020.<\/p>\n\n\n\n<p>With the right approach and information, commercial real estate could be your ticket to consistent money and long-term appreciation. Let&#8217;s dive in and explore whether commercial real estate is a good investment in&nbsp;2023.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-types-of-commercial-real-estate\">Types of commercial real estate<\/h3>\n\n\n\n<p>Before diving into investments, it\u2019s important to understand what qualifies as commercial real estate: It\u2019s a property that\u2019s leased out for businesses or retail purposes. While most commercial real estate properties aren\u2019t places where people live, some are a mix between residential and commercial.<\/p>\n\n\n\n<p>The commercial real estate category can be split up further into four main categories.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Industrial<\/li>\n\n\n\n<li>Retail<\/li>\n\n\n\n<li>Offices<\/li>\n\n\n\n<li>Large apartment complexes<\/li>\n<\/ul>\n\n\n\n<p>These categories can be broken down even more. For instance, retail properties include things like healthcare facilities, hotels, malls, restaurants, and bars. What a commercial property is used for can have a major impact on how it performs as an investment asset.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-industrial-real-estate\"><strong>Industrial Real Estate<\/strong><\/h4>\n\n\n\n<p>In a nutshell, industrial real estate is a property where things like manufacturing, warehousing, distribution, assembly, and production take place. Industrial properties are generally planned and zoned in specified areas by the local government.<\/p>\n\n\n\n<p>Due to the area zoning, they\u2019re strategically located outside urban areas along major transport routes. These properties usually turn out to be a great investment because of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Long-term leases<\/li>\n\n\n\n<li>High rental Income<\/li>\n\n\n\n<li>Low maintenance<\/li>\n\n\n\n<li>Stability<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-retail\"><strong>Retail<\/strong><\/h4>\n\n\n\n<p>Retail real estate can be classified based on the type of tenant. These are pretty much any place where customers go to buy a product or service.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Grocery stores<\/li>\n\n\n\n<li>Banks<\/li>\n\n\n\n<li>Restaurants<\/li>\n\n\n\n<li>Convenience services (Laundromats, barbers, or nail salons)<\/li>\n\n\n\n<li>Pharmacies<\/li>\n\n\n\n<li>Retail outlets<\/li>\n\n\n\n<li>Gyms<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-office\"><strong>Office<\/strong><\/h4>\n\n\n\n<p>Office spaces can be further classified into classes&nbsp;A, B, and&nbsp;C depending on age, location, and infrastructure.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Class A<\/strong> represents an office space with the best location, aesthetics, and infrastructure. These spaces usually have a good market presence and high rents.<\/li>\n\n\n\n<li><strong>Class B<\/strong> properties are a bit older. The finishes are good but aren\u2019t on par with class A. Commercial real estate Investors usually flip these spaces after a little restoration for a good profit.<\/li>\n\n\n\n<li><strong>Class C<\/strong> buildings are old and located in less desirable areas. A lot of maintenance is required to make a decent office space out of a class C property.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-multifamily\"><strong>Multifamily<\/strong><\/h4>\n\n\n\n<p>Multifamily real estate is considered a commercial property if it contains more than five units. This includes things like condos and apartment complexes that generate multiple streams of income from several individual units.<\/p>\n\n\n\n<p>Multifamily real estate can be a great addition to a commercial real estate portfolio because it provides a certain level of diversity. You can\u2019t generate returns on duplexes and single-family homes when they\u2019re vacant, but a residential property that houses multiple tenants is more secure because one or two vacancies don\u2019t put a major damper on profitability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-residential-real-estate-vs-commercial-real-estate\">Residential real estate vs. Commercial real estate<\/h3>\n\n\n\n<p>Residential and commercial real estate investments each have their pros and cons. While residential real estate comes with the benefit of a lower cost of entry, CRE brings in steady cash flow thanks to longer lease terms. Both are great ways to make returns, but each lends itself to different investment goals and capital constraints.<\/p>\n\n\n\n<p>Residential real estate is more welcoming to new investors as it doesn\u2019t require much knowledge to get started. On the other hand, commercial real estate investors need to understand the demand and supply of properties to assess potential returns compared to the broader market. In some cases, commercial real estate comes with triple net leases, which have longer terms and put the tax responsibility on the lessee.<\/p>\n\n\n\n<p>Retail giants like Walmart usually sign triple net leases in ideal locations so that they can create consistent branding across all stores, resulting in a sense of familiarity that brings in customers. This makes it easier for investors since this minimizes maintenance costs and possibly lowers mortgage payments.<\/p>\n\n\n\n<p>Commercial real estate tenants are usually corporations and businesses that are more likely to keep their properties in good shape, making the lives of owners easier.<\/p>\n\n\n\n<p>Another major distinction of commercial real estate is that their value appreciates differently. Prices of residential real estate is more dependent on market supply and demand, while the profitability of commercial real estate usually depends on cash flow. This way, tenants of commercial properties have a greater impact on its value.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-investor-accreditation-and-commercial-real-estate\">Investor accreditation and commercial real estate<\/h3>\n\n\n\n<p>The general misconception of CRE investing is that it\u2019s gatekept by the wealthy. Investors are usually misled by what the term <em>accredited investors<\/em> actually means. SEC defines accredited investors as individuals or businesses with:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>Earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years and reasonably expects the same for the current year.<\/em><\/li>\n\n\n\n<li><em>A net worth over $1&nbsp;million, either alone or together with a spouse or spousal equivalent (excluding the value of the person\u2019s primary residence).<\/em><\/li>\n<\/ul>\n\n\n\n<p>The job of the Securities and Exchange Commission (SEC) is to protect investors from risk, losses, and fraud. So, the commission believes that accredited investors have the risk appetite to withstand potentially larger losses than the average retail investor.<\/p>\n\n\n\n<p>However, accreditation doesn\u2019t necessarily forbid other investors from the commercial real estate market. Here are some ways unaccredited investors can put their money in commercial properties.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>REITs<\/strong> \u2014 Real Estate Investment Trusts are the easiest ways to get into CRE. If your brokerage supports fractional shares, you can invest with as little as $1. These investment trusts buy real estate and pay dividends to investors from rental income and profits from sold properties. Platforms like <a href=\"https:\/\/moneymade.io\/discover\/elevate-money\">Elevate Money<\/a> make the process of investing in fractionalized commercial real estate easier starting at just $100.<\/li>\n\n\n\n<li><strong>Rental properties<\/strong> \u2014 This is an active way of investing in real estate that requires significant starting capital. You can invest in commercial real estate and rent it out for cash flow and profits. However, managing the property and finances as a new investor can be overwhelming. That\u2019s why many new investors invest in syndicated real estate, which gives them the access and benefits of investing without the day-to-day hassle.<\/li>\n\n\n\n<li><strong>Real estate syndications<\/strong> \u2014 SEC-qualified <a href=\"https:\/\/www.sec.gov\/education\/smallbusiness\/exemptofferings\/rule506b\" target=\"_blank\" rel=\"noreferrer noopener sponsored nofollow\">506(b) offerings<\/a> allow unaccredited investors to gain exposure to real estate that\u2019s managed by another company. While syndications can be great passive income opportunities, they\u2019re hard to find since companies that offer these opportunities to unaccredited investors aren\u2019t allowed to advertise them. So, you\u2019ll have to put in some leg work to find the best real estate syndicate to invest in.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-to-get-into-commercial-real-estate\">How to get into commercial real estate?<\/h3>\n\n\n\n<p>The best returns from commercial real estate investments come from identifying opportunities and timing the market for the best time to enter and exit. Let\u2019s look at six main factors behind any successful commercial real estate investor.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-1-networking\"><strong>1.<\/strong> <strong>Networking<\/strong><\/h4>\n\n\n\n<p>Your network is your net worth. Establishing a network of commercial real estate industry professionals in the space helps investors stay informed about opportunities and the best commercial real estate deal on the market.<\/p>\n\n\n\n<p>Getting in touch with commercial real estate brokers, property managers, and fellow investors can get you one step closer on your journey to owning a commercial property.<\/p>\n\n\n\n<p>Online forums like LinkedIn and Facebook can help you build relationships with real estate agents while giving you access to alpha regarding local real estate conferences, seminars, and trade shows.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-2-market-knowledge\"><strong>2.<\/strong> <strong>Market Knowledge<\/strong><\/h4>\n\n\n\n<p>Staying on top of the latest trends and developments in the CRE market helps you make informed investment decisions. Publications like <a href=\"https:\/\/commercialobserver.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Commercial Observer<\/a> can help you read the temperature of market conditions. Consuming content about the market also helps you find the best deals and industry events happening locally or nationally.<\/p>\n\n\n\n<p>Taking courses related to investing, analysis, property management, real estate development, and real estate law can deepen your knowledge of the real estate space and make you a more informed commercial real estate investor.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-3-financial-analysis\"><strong>3.<\/strong> <strong>Financial Analysis<\/strong><\/h4>\n\n\n\n<p>Financial analysis is a crucial part of the investor toolbox. Knowing how to assess things like cash flow, returns on investment, and financial projections help you find good commercial real estate deals. Here are the steps a financial analyst might take before investing in commercial real estate.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Income analysis<\/strong> \u2014 Evaluation of the property\u2019s current and projected rental income and vacancy rates.<\/li>\n\n\n\n<li><strong>Expense analysis<\/strong> \u2014 Evaluation of property\u2019s operating expenses like taxes, insurance, utilities, and maintenance costs.<\/li>\n\n\n\n<li><strong>Cash flow analysis<\/strong> \u2014 This is simply the net operating income (NOI) which can be found by subtracting operating expenses from the rental income.<\/li>\n\n\n\n<li><strong>Capitalization rate analysis<\/strong> \u2014 This helps analyze the risk associated with the property. This figure gives an idea of the annual yield of a property. A higher cap rate means it&#8217;s a riskier investment with a greater potential return. This can be calculated by dividing a property\u2019s operating income by the asset value.<\/li>\n\n\n\n<li><strong>Debt analysis<\/strong> \u2014 Evaluation of the property\u2019s current and projected debt obligations like mortgage payments, interest rates, and loan terms.<\/li>\n\n\n\n<li><strong>ROI analysis<\/strong> \u2014 The final step is to project the ROI based on anticipated income and sale price.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-4-property-evaluation\"><strong>4.<\/strong> <strong>Property evaluation<\/strong><\/h4>\n\n\n\n<p>Most property flippers evaluate the physical condition of commercial real estate properties by visiting it, and this gives them an idea of the potential return they can get by investing in maintenance or renovations.<\/p>\n\n\n\n<p>This skill is developed by studying comparable properties in an area while analyzing their sale and rental rates. Site visits are necessary to evaluate a property, but once this skill is mastered, the location and outlook of a property can determine optimal price and the projected returns on it.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-5-negotiation-skills\"><strong>5.<\/strong> <strong>Negotiation skills<\/strong><\/h4>\n\n\n\n<p>Good negotiation skills are what secure favorable terms on an investment. Commercial real estate transactions that maximize profits require reducing costs at all ends. This skill is essential when negotiating leases with tenants, making a property purchase, or selling a property to get the best possible profit.<\/p>\n\n\n\n<p>In short, strong negotiation skills help investors save money, minimize risks, and maximize returns on their commercial real estate investments.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-6-learning\"><strong>6.<\/strong> <strong>Learning<\/strong><\/h4>\n\n\n\n<p>The value of learning can\u2019t be overlooked. Continual learning not only helps to make informed decisions but also to identify the niche of commercial real estate that you want to specialize in.<\/p>\n\n\n\n<p>Investors who know more have a competitive edge since their superior understanding of the legal and regulatory regime helps them get better deals and make fewer mistakes. Learning the industry\u2019s asset management practices helps maximize returns and minimize risks.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-important-tips-for-beginners\">Important tips for beginners<\/h3>\n\n\n\n<p>If you\u2019re new to commercial real estate investing, it\u2019s important to set goals. You should be realistic and devise a strategy that helps achieve specific investment objectives. For example, if you\u2019re looking to build a passive income, you can establish an owner-occupied business on the property or own equity in the tenant\u2019s business.<\/p>\n\n\n\n<p>It\u2019s crucial not to give in to greed\u2014your goals should be achievable within a reasonable timeframe.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-start-small-and-diversify\"><strong>Start small and diversify<\/strong><\/h4>\n\n\n\n<p>As a beginner, consider starting small in the CRE market. REITs have changed the investment landscape by enabling you to buy fractional shares of properties. You can minimize risk and get the gist of the market by fractionally investing in different types of properties.<\/p>\n\n\n\n<p>While diversity is never bad, picking a niche and gaining experience in that niche can be beneficial by leading to more successful investments in the future.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-pick-a-niche\"><strong>Pick a niche<\/strong><\/h4>\n\n\n\n<p>Specializing in a specific property type like retail, office, industrial, or multifamily lets you build a deeper understanding of the market. This can be a game changer for someone who\u2019s just entering the market.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Gain a competitive advantage over other investors in the marketplace<\/li>\n\n\n\n<li>Networking with people from the same niche creates valuable relationships and helps you draw from the knowledge and experience experts.<\/li>\n\n\n\n<li>Earn higher returns by avoiding unfamiliar and untested markets.<\/li>\n\n\n\n<li>Get better commercial real estate deals by relying on your expertise.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-be-patient\"><strong>Be patient<\/strong><\/h4>\n\n\n\n<p>Commercial real estate investing requires a lot of patience. In fact, a lot of strategies that yield high returns often require holding your investments for a long time.<\/p>\n\n\n\n<p>The market sometimes turns illiquid for a few months due to low demand. This is the time to be patient and strategize. New tenants are always around the corner.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-work-with-a-commercial-real-estate-agent\"><strong>Work with a commercial real estate agent<\/strong><\/h4>\n\n\n\n<p>When it comes to commercial real estate investing, working with an agent can be incredibly beneficial. These professionals bring a wealth of market knowledge and expertise to the table, helping investors identify properties that meet their investment goals, negotiate favorable terms and agreements, and navigate the complex legal and regulatory requirements of the industry.<\/p>\n\n\n\n<p>New investors shouldn\u2019t put all their eggs in one basket. While commercial real estate investing can provide opportunities for lucrative returns, it\u2019s important to have your portfolio diversified into other asset classes like stocks and cryptocurrencies.<\/p>\n\n\n\n<p>Depending on your risk tolerance and budget, a well-managed portfolio can be diversified into alternate assets like private equity, hedge funds, fine art, and even collectibles like watches, fine wine, vintage comic books, and sports cards.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-commercial-real-estate-investing-strategies\">Commercial real estate investing strategies<\/h3>\n\n\n\n<p>Once you\u2019ve identified your investment goals and picked a niche, there are a lot of investment strategies to choose from.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Buy and hold<\/strong>: It\u2019s common to hold the property for a long period of time to generate rental income and capitalize on price appreciation.<\/li>\n\n\n\n<li><strong>Buy, rehab, flip<\/strong>: This strategy requires having a keen eye for property analysis and the network to identify opportunities for the best commercial deals in the market. Commercial properties that are in need of renovation can be acquired, renovated, and resold for a profit.<\/li>\n\n\n\n<li><strong>Development projects<\/strong>: Buying land and developing multifamily apartments, office buildings, warehouses, or retail centers is more work, but can be very lucrative depending on the location. The goal here is to bring up the value of a property and using it to generate income by renting or selling it.<\/li>\n\n\n\n<li><strong>REITs<\/strong>: Real estate investment funds eliminate the need for owning the property. Instead, an investor can create a diversified portfolio of commercial properties and generate rental income through dividends.<\/li>\n<\/ul>\n\n\n\n<p>The strategy you choose should be based on your financial goals, risk tolerance, and budget. You can also use commercial real estate investment platforms to easily access the asset class.<\/p>\n\n\n\n<p><a href=\"https:\/\/moneymade.io\/discover\/cadre\">Cadre<\/a> is a leading platform that sources the best commercial real estate deals for accredited investors by selling them as high-growth funds. If you\u2019re unaccredited, platforms like <a href=\"https:\/\/moneymade.io\/discover\/streitwise\">Streitwise<\/a> generate an average dividend passive income of 8.96% with a minimum investment of $4,600.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-pros-and-cons-of-investing-in-commercial-real-estate\">Pros and cons of investing in commercial real estate<\/h3>\n\n\n\n<p>CRE investments come with pros and cons. Understanding the benefits and challenges associated with the asset class you\u2019re investing in is the key to making money.<\/p>\n\n\n\n<p>Some of the benefits of commercial real estate investing are potentially higher returns, diversification, and tax deductions. However, it also comes with several challenges like a high initial investment, a complex market, long-term commitment, and the potential to be hurt by economic downturns.<\/p>\n\n\n\n<div class=\"acf-block\">\n  <div class=\"pro-con\">\n    <div class=\"pro-con__half\">\n      <div class=\"pro-con__title\">\n                  <svg width=\"20\" height=\"22\" viewBox=\"0 0 20 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<path d=\"M18.3 9.35008C17.9676 9.00064 17.5672 8.72282 17.1236 8.53367C16.6799 8.34451 16.2023 8.24801 15.72 8.25008H14.06V8.20008C14.2 7.71008 14.33 7.20008 14.43 6.83008C14.7413 5.73795 14.8062 4.59033 14.62 3.47008C14.5091 2.74612 14.2243 2.05984 13.79 1.47008C13.3779 0.936521 12.8015 0.553474 12.15 0.380078C11.9569 0.332798 11.7588 0.30929 11.56 0.310078H11.44C11.1748 0.326457 10.916 0.39798 10.68 0.520078C10.2294 0.785815 9.89417 1.21017 9.74 1.71008V1.80008V1.91008L9.62 2.00008V2.17008L9.43 2.82008L9.33 3.16008L8.93 4.58008C8.90665 4.66566 8.87655 4.74925 8.84 4.83008C8.39 5.53008 7.91 6.24008 7.43 6.96008L6.56 8.25008H3.25C2.58696 8.25008 1.95107 8.51347 1.48223 8.98231C1.01339 9.45115 0.75 10.087 0.75 10.7501V18.7501C0.75 19.4131 1.01339 20.049 1.48223 20.5178C1.95107 20.9867 2.58696 21.2501 3.25 21.2501H5.25C5.87515 21.2502 6.47651 21.0104 6.93 20.5801C8.05 20.8301 9.29 21.0901 10.3 21.3001L11.7 21.5901L11.94 21.6501C12.1112 21.6891 12.285 21.7159 12.46 21.7301C12.6198 21.74 12.7802 21.74 12.94 21.7301C14.0439 21.7287 15.1163 21.3621 15.99 20.6874C16.8638 20.0127 17.4896 19.0678 17.77 18.0001C18.18 16.3801 19.04 13.0001 19.05 13.0001C19.1498 12.6508 19.2134 12.2923 19.24 11.9301C19.2653 11.4589 19.1951 10.9874 19.0336 10.544C18.872 10.1007 18.6225 9.69455 18.3 9.35008ZM12.94 19.7601H12.67H12.56L12.09 19.6701L10.71 19.3901L7.71 18.7501V10.0801C8.14 9.41008 8.59 8.74008 9.04 8.08008C9.49 7.42008 10 6.67008 10.47 6.00008C10.627 5.75053 10.7418 5.47688 10.81 5.19008L11.22 3.77008L11.33 3.38008L11.5 2.78008L11.56 2.55008V2.45008V2.40008C11.5571 2.37015 11.5571 2.34001 11.56 2.31008C11.7805 2.36033 11.9735 2.49262 12.1 2.68008C12.3391 3.03066 12.4963 3.43052 12.56 3.85008C12.6869 4.69246 12.6289 5.55236 12.39 6.37008C12.21 7.07008 11.67 9.01008 11.67 9.01008C11.6282 9.15765 11.6208 9.31287 11.6486 9.46373C11.6763 9.61459 11.7384 9.75705 11.83 9.88008C11.9242 10.0037 12.0435 10.1059 12.18 10.1801C12.322 10.2427 12.4749 10.2767 12.63 10.2801H15.63C15.8377 10.274 16.0444 10.3115 16.2368 10.3901C16.4292 10.4686 16.603 10.5866 16.7471 10.7363C16.8911 10.886 17.0023 11.0643 17.0734 11.2595C17.1445 11.4548 17.174 11.6627 17.16 11.8701C17.1341 12.0899 17.0906 12.3072 17.03 12.5201C17.03 12.5201 16.16 15.9101 15.74 17.5201C15.5767 18.1452 15.216 18.7008 14.7115 19.1044C14.207 19.508 13.5857 19.738 12.94 19.7601ZM2.75 10.7601C2.74717 10.6937 2.75817 10.6274 2.78229 10.5654C2.80642 10.5035 2.84315 10.4472 2.89015 10.4002C2.93716 10.3532 2.99342 10.3165 3.05536 10.2924C3.1173 10.2682 3.18358 10.2572 3.25 10.2601H5.75V18.7601C5.75283 18.8265 5.74183 18.8928 5.71771 18.9547C5.69358 19.0167 5.65685 19.0729 5.60985 19.1199C5.56284 19.1669 5.50658 19.2037 5.44464 19.2278C5.3827 19.2519 5.31642 19.2629 5.25 19.2601H3.25C3.18358 19.2629 3.1173 19.2519 3.05536 19.2278C2.99342 19.2037 2.93716 19.1669 2.89015 19.1199C2.84315 19.0729 2.80642 19.0167 2.78229 18.9547C2.75817 18.8928 2.74717 18.8265 2.75 18.7601V10.7601Z\" fill=\"#14AEA5\"\/>\n<\/svg>\n\n                  <h4>Pros<\/h4>\n              <\/div>\n      <div class=\"pro-con__content\">\n        <ul>\n<li>Stable cash flow<\/li>\n<li>Long-term leases<\/li>\n<li>Triple net leases possible<\/li>\n<\/ul>\n      <\/div>\n    <\/div>\n\n    <div class=\"pro-con__half\">\n      <div class=\"pro-con__title\">\n                  <svg width=\"20\" height=\"22\" viewBox=\"0 0 20 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<path d=\"M18.3 12.6499C17.9676 12.9994 17.5672 13.2772 17.1236 13.4663C16.6799 13.6555 16.2023 13.752 15.72 13.7499H14.06V13.7999C14.2 14.2899 14.33 14.7999 14.43 15.1699C14.7413 16.262 14.8062 17.4097 14.62 18.5299C14.5091 19.2539 14.2243 19.9402 13.79 20.5299C13.3779 21.0635 12.8015 21.4465 12.15 21.6199C11.9569 21.6672 11.7588 21.6907 11.56 21.6899H11.44C11.1748 21.6735 10.916 21.602 10.68 21.4799C10.2294 21.2142 9.89417 20.7898 9.74 20.2899V20.1999V20.0899L9.62 19.9999V19.8299L9.43 19.1799L9.33 18.8399L8.93 17.4199C8.90665 17.3343 8.87655 17.2507 8.84 17.1699C8.39 16.4699 7.91 15.7599 7.43 15.0399L6.56 13.7499H3.25C2.58696 13.7499 1.95107 13.4865 1.48223 13.0177C1.01339 12.5488 0.75 11.913 0.75 11.2499V3.24992C0.75 2.58688 1.01339 1.951 1.48223 1.48215C1.95107 1.01331 2.58696 0.749922 3.25 0.749922H5.25C5.87515 0.749792 6.47651 0.989618 6.93 1.41992C8.05 1.16992 9.29 0.909922 10.3 0.699923L11.7 0.409922L11.94 0.349922C12.1112 0.31085 12.285 0.284115 12.46 0.269922C12.6198 0.259991 12.7802 0.259991 12.94 0.269922C14.0439 0.271252 15.1163 0.637867 15.99 1.31259C16.8638 1.98732 17.4896 2.93222 17.77 3.99992C18.18 5.61992 19.04 8.99992 19.05 8.99992C19.1498 9.34915 19.2134 9.7077 19.24 10.0699C19.2653 10.5411 19.1951 11.0126 19.0336 11.456C18.872 11.8993 18.6225 12.3055 18.3 12.6499ZM12.94 2.23992H12.67H12.56L12.09 2.32992L10.71 2.60992L7.71 3.24992V11.9199C8.14 12.5899 8.59 13.2599 9.04 13.9199C9.49 14.5799 10 15.3299 10.47 15.9999C10.627 16.2495 10.7418 16.5231 10.81 16.8099L11.22 18.2299L11.33 18.6199L11.5 19.2199L11.56 19.4499V19.5499V19.5999C11.5571 19.6299 11.5571 19.66 11.56 19.6899C11.7805 19.6397 11.9735 19.5074 12.1 19.3199C12.3391 18.9693 12.4963 18.5695 12.56 18.1499C12.6869 17.3075 12.6289 16.4476 12.39 15.6299C12.21 14.9299 11.67 12.9899 11.67 12.9899C11.6282 12.8423 11.6208 12.6871 11.6486 12.5363C11.6763 12.3854 11.7384 12.243 11.83 12.1199C11.9242 11.9963 12.0435 11.8941 12.18 11.8199C12.322 11.7573 12.4749 11.7233 12.63 11.7199H15.63C15.8377 11.726 16.0444 11.6885 16.2368 11.6099C16.4292 11.5314 16.603 11.4134 16.7471 11.2637C16.8911 11.114 17.0023 10.9357 17.0734 10.7405C17.1445 10.5452 17.174 10.3373 17.16 10.1299C17.1341 9.91014 17.0906 9.69277 17.03 9.47992C17.03 9.47992 16.16 6.08992 15.74 4.47992C15.5767 3.85483 15.216 3.29916 14.7115 2.89556C14.207 2.49197 13.5857 2.26202 12.94 2.23992ZM2.75 11.2399C2.74717 11.3063 2.75817 11.3726 2.78229 11.4346C2.80642 11.4965 2.84315 11.5528 2.89015 11.5998C2.93716 11.6468 2.99342 11.6835 3.05536 11.7076C3.1173 11.7318 3.18358 11.7428 3.25 11.7399H5.75V3.23992C5.75283 3.17351 5.74183 3.10723 5.71771 3.04528C5.69358 2.98334 5.65685 2.92708 5.60985 2.88008C5.56284 2.83307 5.50658 2.79634 5.44464 2.77221C5.3827 2.74809 5.31642 2.73709 5.25 2.73992H3.25C3.18358 2.73709 3.1173 2.74809 3.05536 2.77221C2.99342 2.79634 2.93716 2.83307 2.89015 2.88008C2.84315 2.92708 2.80642 2.98334 2.78229 3.04528C2.75817 3.10723 2.74717 3.17351 2.75 3.23992V11.2399Z\" fill=\"#ED2348\"\/>\n<\/svg>\n\n                 <h4>Cons<\/h4>\n              <\/div>\n      <div class=\"pro-con__content\">\n        <ul>\n<li>Impact of economic downturns<\/li>\n<li>Narrow market for tenants<\/li>\n<li>Expensive maintenance &amp; overhead<\/li>\n<\/ul>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<h4 class=\"wp-block-heading\" id=\"h-pros-of-commercial-real-estate-investing\"><strong>Pros of commercial real estate investing<\/strong><\/h4>\n\n\n\n<p>The biggest advantage is cash flow stability due to longer lease contracts with commercial tenants. Apart from stable cash flow, the price of the real estate can depend on how recently it was renovated, the neighborhood it\u2019s in, and what kind of businesses it\u2019s suitable for.<\/p>\n\n\n\n<p>Some businesses sign commercial property leases to maintain the look and feel of a property that\u2019s in line with their brand. So, some retail tenants would sign triple net leases, which makes them responsible for paying all property overheads, including taxes, insurance, and leases.<\/p>\n\n\n\n<p>Furthermore, commercial tenants are usually large corporations with deep pockets that can afford to maintain the property. This means you won\u2019t likely have to worry about the property being in bad shape if the tenant ever decides to leave.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-cons-of-commercial-real-estate-investing\"><strong>Cons of commercial real estate investing<\/strong><\/h4>\n\n\n\n<p>CRE investments can be risky, the main reason being tenant turnover. If the economy is struggling, finding new tenants to occupy commercial real estate can be challenging. The property owner also must cater to the potential tenants\u2019 requirements.<\/p>\n\n\n\n<p>Another downside of commercial real estate is the smaller market compared to residential real estate. Commercial buildings can be bad investments in times of low economic growth and reduced demand.<\/p>\n\n\n\n<p>For example, the pandemic increased remote working, which directly impacted the demand for office spaces. This meant new commercial office spaces had trouble finding new tenants and retaining existing ones.<\/p>\n\n\n\n<p>Owning a commercial property also means taking on the hassle of management responsibilities. Finding tenants and handling management, paperwork, and day-to-day operations can be a burden. While you can hire other people to do those things, it\u2019ll cut into your bottom line, which means less take-home profit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-tech-s-impact-on-commercial-real-estate-investing\">Tech\u2019s impact on commercial real estate investing<\/h3>\n\n\n\n<p>It\u2019s important to understand trend shifts and how the market is affected. Digitization is having a profound impact on commercial real estate and how businesses operate.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-impact-on-retail\"><strong>Impact on retail<\/strong><\/h4>\n\n\n\n<p>The shift to e-commerce has reduced the demand for traditional retail spaces, yet it also created new opportunities for properties that cater to online businesses. This means spaces for back office operations and warehouses are in higher demand than ever before.<\/p>\n\n\n\n<p>The steep rise in the e-commerce business increased the demand for industrial properties used for the manufacturing and distribution of merchandise.<\/p>\n\n\n\n<p>But digitization hasn\u2019t affected the three \u2018L\u2019s of retail properties: Location, location, location. Brands like Starbucks are always on the lookout for well-situated spots to set up shop.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-impact-on-office-spaces\"><strong>Impact on office spaces<\/strong><\/h4>\n\n\n\n<p>The rise of remote work has helped businesses reduce costs and improve employee mobility. However, this has also increased the demand for co-working spaces. So, if the space is refurbished with the right blend of innovation and added value, office spaces can be converted into co-working cash cows.<\/p>\n\n\n\n<p>This digitization, however, has not affected the three \u2018L\u2019s\u2019 of retail properties: Location, location, location. Brands like Starbucks are always on the lookout for well-situated spots to set up shop.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-is-commercial-real-estate-investing-right-for-you\">Is commercial real estate investing right for you?<\/h3>\n\n\n\n<p>Investing in commercial properties can be a valuable opportunity to diversify your portfolio and potentially generate higher returns than residential real estate or stocks.<\/p>\n\n\n\n<p>It\u2019s important to understand the commercial real estate market, the property you\u2019re investing in, and the financial implications before making a decision. Developing skills around financial analysis, property evaluation, and negotiation will set you apart from other investors, lead you to make more informed decisions, and maximize your returns.<\/p>\n\n\n\n<p>Additionally, setting clear investment goals and building a network of trusted professionals can help you navigate the complex and competitive world of commercial real estate. While there are challenges associated with investing in CRE, the opportunities for growth and tax benefits make it worth considering when adding real estate to your portfolio.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Commercial real estate outperforms the S&amp;P and pays investors passive income. Here\u2019s how to get in on the action. Despite popular belief, commercial real estate (CRE) investing isn&#8217;t only for the upper class. It\u2019s actually quite the opposite\u2014a gold mine in a regular investor&#8217;s diversified portfolio. Cash-flowing assets and strong price appreciation are a deadly [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":1013,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[3],"tags":[45,52,74,53],"post_authors":[107],"class_list":["post-952","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-long-term-growth","tag-passive-income","tag-passive-investing","tag-real-estate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.1 (Yoast SEO v25.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Get Into Commercial Real Estate | MoneyMade<\/title>\n<meta name=\"description\" content=\"Commercial real estate has outperformed the S&amp;P 500 for decades. 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Here\u2019s how small-scale investors can get in on the action.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/moneymade.io\/learn\/articles\/how-to-get-into-commercial-real-estate\/","og_locale":"en_US","og_type":"article","og_title":"How to Get Into Commercial Real Estate","og_description":"Commercial real estate has outperformed the S&P 500 for decades. 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Here\u2019s how small-scale investors can get in on the action.","breadcrumb":{"@id":"https:\/\/moneymade.io\/learn\/articles\/how-to-get-into-commercial-real-estate\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/moneymade.io\/learn\/articles\/how-to-get-into-commercial-real-estate\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/moneymade.io\/learn\/articles\/how-to-get-into-commercial-real-estate\/#primaryimage","url":"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Money_Made_Commercial_Real_Estate_MO_2beac5d3d2.png","contentUrl":"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Money_Made_Commercial_Real_Estate_MO_2beac5d3d2.png","width":1200,"height":800},{"@type":"BreadcrumbList","@id":"https:\/\/moneymade.io\/learn\/articles\/how-to-get-into-commercial-real-estate\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/moneymade.io\/learn\/"},{"@type":"ListItem","position":2,"name":"Articles","item":"https:\/\/moneymade.io\/learn\/articles\/"},{"@type":"ListItem","position":3,"name":"How to Get Into Commercial Real Estate"}]},{"@type":"WebSite","@id":"https:\/\/moneymade.io\/learn\/#website","url":"https:\/\/moneymade.io\/learn\/","name":"MoneyMade","description":"Make Money Moves That Matter.","publisher":{"@id":"https:\/\/moneymade.io\/learn\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/moneymade.io\/learn\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/moneymade.io\/learn\/#organization","name":"MoneyMade","url":"https:\/\/moneymade.io\/learn\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/moneymade.io\/learn\/#\/schema\/logo\/image\/","url":"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Copy-of-MoneyMade-Icon-Default.svg","contentUrl":"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Copy-of-MoneyMade-Icon-Default.svg","width":96,"height":96,"caption":"MoneyMade"},"image":{"@id":"https:\/\/moneymade.io\/learn\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/moneymade.io\/learn\/#\/schema\/person\/8c0c0c37e0c31b81a77ea024f0085a4b","name":"nick@klaymedia.com","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/moneymade.io\/learn\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/55886835a570cf0ebb443912af4176b642ef8a6a841026598d95ef9d3aaf08ac?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/55886835a570cf0ebb443912af4176b642ef8a6a841026598d95ef9d3aaf08ac?s=96&d=mm&r=g","caption":"nick@klaymedia.com"},"url":"https:\/\/moneymade.io\/learn\/author\/nickklaymedia-com\/"}]}},"fig_blocks":[{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p><strong><em>Commercial real estate outperforms the S&amp;P and pays investors passive income. Here\u2019s how to get in on the action.<\/em><\/strong><\/p>\n","innerContent":["\n<p><strong><em>Commercial real estate outperforms the S&amp;P and pays investors passive income. Here\u2019s how to get in on the action.<\/em><\/strong><\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/image","attrs":[],"innerBlocks":[],"innerHTML":"\n<figure class=\"wp-block-image\"><img src=\"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Money_Made_Commercial_Real_Estate_MO_2beac5d3d2.png\" alt=\"How to Get Into Commercial Real Estate in 2023\"\/><\/figure>\n","innerContent":["\n<figure class=\"wp-block-image\"><img src=\"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Money_Made_Commercial_Real_Estate_MO_2beac5d3d2.png\" alt=\"How to Get Into Commercial Real Estate in 2023\"\/><\/figure>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Despite popular belief, commercial real estate (CRE) investing isn't only for the upper class. It\u2019s actually quite the opposite\u2014a gold mine in a regular investor's diversified portfolio.<\/p>\n","innerContent":["\n<p>Despite popular belief, commercial real estate (CRE) investing isn't only for the upper class. It\u2019s actually quite the opposite\u2014a gold mine in a regular investor's diversified portfolio.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Cash-flowing assets and strong price appreciation are a deadly combo. CRE provides predictable, steady returns amid market fluctuations and recessions.<\/p>\n","innerContent":["\n<p>Cash-flowing assets and strong price appreciation are a deadly combo. CRE provides predictable, steady returns amid market fluctuations and recessions.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>While the S&amp;P&nbsp;500 has averaged around 9.6% annual returns in the last 25&nbsp;years, commercial real estate outperformed it, yielding average annualized returns of 10.3% despite the economic turmoil in&nbsp;2008 and&nbsp;2020.<\/p>\n","innerContent":["\n<p>While the S&amp;P&nbsp;500 has averaged around 9.6% annual returns in the last 25&nbsp;years, commercial real estate outperformed it, yielding average annualized returns of 10.3% despite the economic turmoil in&nbsp;2008 and&nbsp;2020.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>With the right approach and information, commercial real estate could be your ticket to consistent money and long-term appreciation. Let's dive in and explore whether commercial real estate is a good investment in&nbsp;2023.<\/p>\n","innerContent":["\n<p>With the right approach and information, commercial real estate could be your ticket to consistent money and long-term appreciation. Let's dive in and explore whether commercial real estate is a good investment in&nbsp;2023.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":3},"innerBlocks":[],"innerHTML":"\n<h3 class=\"wp-block-heading\" id=\"h-types-of-commercial-real-estate\">Types of commercial real estate<\/h3>\n","innerContent":["\n<h3 class=\"wp-block-heading\" id=\"h-types-of-commercial-real-estate\">Types of commercial real estate<\/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Before diving into investments, it\u2019s important to understand what qualifies as commercial real estate: It\u2019s a property that\u2019s leased out for businesses or retail purposes. While most commercial real estate properties aren\u2019t places where people live, some are a mix between residential and commercial.<\/p>\n","innerContent":["\n<p>Before diving into investments, it\u2019s important to understand what qualifies as commercial real estate: It\u2019s a property that\u2019s leased out for businesses or retail purposes. While most commercial real estate properties aren\u2019t places where people live, some are a mix between residential and commercial.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The commercial real estate category can be split up further into four main categories.<\/p>\n","innerContent":["\n<p>The commercial real estate category can be split up further into four main categories.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Industrial<\/li>\n","innerContent":["\n<li>Industrial<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Retail<\/li>\n","innerContent":["\n<li>Retail<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Offices<\/li>\n","innerContent":["\n<li>Offices<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Large apartment complexes<\/li>\n","innerContent":["\n<li>Large apartment complexes<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n\n\n\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"\n\n",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>These categories can be broken down even more. For instance, retail properties include things like healthcare facilities, hotels, malls, restaurants, and bars. What a commercial property is used for can have a major impact on how it performs as an investment asset.<\/p>\n","innerContent":["\n<p>These categories can be broken down even more. For instance, retail properties include things like healthcare facilities, hotels, malls, restaurants, and bars. What a commercial property is used for can have a major impact on how it performs as an investment asset.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-industrial-real-estate\"><strong>Industrial Real Estate<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-industrial-real-estate\"><strong>Industrial Real Estate<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>In a nutshell, industrial real estate is a property where things like manufacturing, warehousing, distribution, assembly, and production take place. Industrial properties are generally planned and zoned in specified areas by the local government.<\/p>\n","innerContent":["\n<p>In a nutshell, industrial real estate is a property where things like manufacturing, warehousing, distribution, assembly, and production take place. Industrial properties are generally planned and zoned in specified areas by the local government.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Due to the area zoning, they\u2019re strategically located outside urban areas along major transport routes. These properties usually turn out to be a great investment because of:<\/p>\n","innerContent":["\n<p>Due to the area zoning, they\u2019re strategically located outside urban areas along major transport routes. These properties usually turn out to be a great investment because of:<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Long-term leases<\/li>\n","innerContent":["\n<li>Long-term leases<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>High rental Income<\/li>\n","innerContent":["\n<li>High rental Income<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Low maintenance<\/li>\n","innerContent":["\n<li>Low maintenance<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Stability<\/li>\n","innerContent":["\n<li>Stability<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n\n\n\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"\n\n",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-retail\"><strong>Retail<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-retail\"><strong>Retail<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Retail real estate can be classified based on the type of tenant. These are pretty much any place where customers go to buy a product or service.<\/p>\n","innerContent":["\n<p>Retail real estate can be classified based on the type of tenant. These are pretty much any place where customers go to buy a product or service.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Grocery stores<\/li>\n","innerContent":["\n<li>Grocery stores<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Banks<\/li>\n","innerContent":["\n<li>Banks<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Restaurants<\/li>\n","innerContent":["\n<li>Restaurants<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Convenience services (Laundromats, barbers, or nail salons)<\/li>\n","innerContent":["\n<li>Convenience services (Laundromats, barbers, or nail salons)<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Pharmacies<\/li>\n","innerContent":["\n<li>Pharmacies<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Retail outlets<\/li>\n","innerContent":["\n<li>Retail outlets<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Gyms<\/li>\n","innerContent":["\n<li>Gyms<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n\n\n\n\n\n\n\n\n\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"\n\n",null,"\n\n",null,"\n\n",null,"\n\n",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-office\"><strong>Office<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-office\"><strong>Office<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Office spaces can be further classified into classes&nbsp;A, B, and&nbsp;C depending on age, location, and infrastructure.<\/p>\n","innerContent":["\n<p>Office spaces can be further classified into classes&nbsp;A, B, and&nbsp;C depending on age, location, and infrastructure.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>Class A<\/strong> represents an office space with the best location, aesthetics, and infrastructure. These spaces usually have a good market presence and high rents.<\/li>\n","innerContent":["\n<li><strong>Class A<\/strong> represents an office space with the best location, aesthetics, and infrastructure. These spaces usually have a good market presence and high rents.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>Class B<\/strong> properties are a bit older. The finishes are good but aren\u2019t on par with class A. Commercial real estate Investors usually flip these spaces after a little restoration for a good profit.<\/li>\n","innerContent":["\n<li><strong>Class B<\/strong> properties are a bit older. The finishes are good but aren\u2019t on par with class A. Commercial real estate Investors usually flip these spaces after a little restoration for a good profit.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>Class C<\/strong> buildings are old and located in less desirable areas. A lot of maintenance is required to make a decent office space out of a class C property.<\/li>\n","innerContent":["\n<li><strong>Class C<\/strong> buildings are old and located in less desirable areas. A lot of maintenance is required to make a decent office space out of a class C property.<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-multifamily\"><strong>Multifamily<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-multifamily\"><strong>Multifamily<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Multifamily real estate is considered a commercial property if it contains more than five units. This includes things like condos and apartment complexes that generate multiple streams of income from several individual units.<\/p>\n","innerContent":["\n<p>Multifamily real estate is considered a commercial property if it contains more than five units. This includes things like condos and apartment complexes that generate multiple streams of income from several individual units.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Multifamily real estate can be a great addition to a commercial real estate portfolio because it provides a certain level of diversity. You can\u2019t generate returns on duplexes and single-family homes when they\u2019re vacant, but a residential property that houses multiple tenants is more secure because one or two vacancies don\u2019t put a major damper on profitability.<\/p>\n","innerContent":["\n<p>Multifamily real estate can be a great addition to a commercial real estate portfolio because it provides a certain level of diversity. You can\u2019t generate returns on duplexes and single-family homes when they\u2019re vacant, but a residential property that houses multiple tenants is more secure because one or two vacancies don\u2019t put a major damper on profitability.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":3},"innerBlocks":[],"innerHTML":"\n<h3 class=\"wp-block-heading\" id=\"h-residential-real-estate-vs-commercial-real-estate\">Residential real estate vs. Commercial real estate<\/h3>\n","innerContent":["\n<h3 class=\"wp-block-heading\" id=\"h-residential-real-estate-vs-commercial-real-estate\">Residential real estate vs. Commercial real estate<\/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Residential and commercial real estate investments each have their pros and cons. While residential real estate comes with the benefit of a lower cost of entry, CRE brings in steady cash flow thanks to longer lease terms. Both are great ways to make returns, but each lends itself to different investment goals and capital constraints.<\/p>\n","innerContent":["\n<p>Residential and commercial real estate investments each have their pros and cons. While residential real estate comes with the benefit of a lower cost of entry, CRE brings in steady cash flow thanks to longer lease terms. Both are great ways to make returns, but each lends itself to different investment goals and capital constraints.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Residential real estate is more welcoming to new investors as it doesn\u2019t require much knowledge to get started. On the other hand, commercial real estate investors need to understand the demand and supply of properties to assess potential returns compared to the broader market. In some cases, commercial real estate comes with triple net leases, which have longer terms and put the tax responsibility on the lessee.<\/p>\n","innerContent":["\n<p>Residential real estate is more welcoming to new investors as it doesn\u2019t require much knowledge to get started. On the other hand, commercial real estate investors need to understand the demand and supply of properties to assess potential returns compared to the broader market. In some cases, commercial real estate comes with triple net leases, which have longer terms and put the tax responsibility on the lessee.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Retail giants like Walmart usually sign triple net leases in ideal locations so that they can create consistent branding across all stores, resulting in a sense of familiarity that brings in customers. This makes it easier for investors since this minimizes maintenance costs and possibly lowers mortgage payments.<\/p>\n","innerContent":["\n<p>Retail giants like Walmart usually sign triple net leases in ideal locations so that they can create consistent branding across all stores, resulting in a sense of familiarity that brings in customers. This makes it easier for investors since this minimizes maintenance costs and possibly lowers mortgage payments.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Commercial real estate tenants are usually corporations and businesses that are more likely to keep their properties in good shape, making the lives of owners easier.<\/p>\n","innerContent":["\n<p>Commercial real estate tenants are usually corporations and businesses that are more likely to keep their properties in good shape, making the lives of owners easier.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Another major distinction of commercial real estate is that their value appreciates differently. Prices of residential real estate is more dependent on market supply and demand, while the profitability of commercial real estate usually depends on cash flow. This way, tenants of commercial properties have a greater impact on its value.<\/p>\n","innerContent":["\n<p>Another major distinction of commercial real estate is that their value appreciates differently. Prices of residential real estate is more dependent on market supply and demand, while the profitability of commercial real estate usually depends on cash flow. This way, tenants of commercial properties have a greater impact on its value.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":3},"innerBlocks":[],"innerHTML":"\n<h3 class=\"wp-block-heading\" id=\"h-investor-accreditation-and-commercial-real-estate\">Investor accreditation and commercial real estate<\/h3>\n","innerContent":["\n<h3 class=\"wp-block-heading\" id=\"h-investor-accreditation-and-commercial-real-estate\">Investor accreditation and commercial real estate<\/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The general misconception of CRE investing is that it\u2019s gatekept by the wealthy. Investors are usually misled by what the term <em>accredited investors<\/em> actually means. SEC defines accredited investors as individuals or businesses with:<\/p>\n","innerContent":["\n<p>The general misconception of CRE investing is that it\u2019s gatekept by the wealthy. Investors are usually misled by what the term <em>accredited investors<\/em> actually means. SEC defines accredited investors as individuals or businesses with:<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><em>Earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years and reasonably expects the same for the current year.<\/em><\/li>\n","innerContent":["\n<li><em>Earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years and reasonably expects the same for the current year.<\/em><\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><em>A net worth over $1&nbsp;million, either alone or together with a spouse or spousal equivalent (excluding the value of the person\u2019s primary residence).<\/em><\/li>\n","innerContent":["\n<li><em>A net worth over $1&nbsp;million, either alone or together with a spouse or spousal equivalent (excluding the value of the person\u2019s primary residence).<\/em><\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The job of the Securities and Exchange Commission (SEC) is to protect investors from risk, losses, and fraud. So, the commission believes that accredited investors have the risk appetite to withstand potentially larger losses than the average retail investor.<\/p>\n","innerContent":["\n<p>The job of the Securities and Exchange Commission (SEC) is to protect investors from risk, losses, and fraud. So, the commission believes that accredited investors have the risk appetite to withstand potentially larger losses than the average retail investor.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>However, accreditation doesn\u2019t necessarily forbid other investors from the commercial real estate market. Here are some ways unaccredited investors can put their money in commercial properties.<\/p>\n","innerContent":["\n<p>However, accreditation doesn\u2019t necessarily forbid other investors from the commercial real estate market. Here are some ways unaccredited investors can put their money in commercial properties.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>REITs<\/strong> \u2014 Real Estate Investment Trusts are the easiest ways to get into CRE. If your brokerage supports fractional shares, you can invest with as little as $1. These investment trusts buy real estate and pay dividends to investors from rental income and profits from sold properties. Platforms like <a href=\"https:\/\/moneymade.io\/discover\/elevate-money\">Elevate Money<\/a> make the process of investing in fractionalized commercial real estate easier starting at just $100.<\/li>\n","innerContent":["\n<li><strong>REITs<\/strong> \u2014 Real Estate Investment Trusts are the easiest ways to get into CRE. If your brokerage supports fractional shares, you can invest with as little as $1. These investment trusts buy real estate and pay dividends to investors from rental income and profits from sold properties. Platforms like <a href=\"https:\/\/moneymade.io\/discover\/elevate-money\">Elevate Money<\/a> make the process of investing in fractionalized commercial real estate easier starting at just $100.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>Rental properties<\/strong> \u2014 This is an active way of investing in real estate that requires significant starting capital. You can invest in commercial real estate and rent it out for cash flow and profits. However, managing the property and finances as a new investor can be overwhelming. That\u2019s why many new investors invest in syndicated real estate, which gives them the access and benefits of investing without the day-to-day hassle.<\/li>\n","innerContent":["\n<li><strong>Rental properties<\/strong> \u2014 This is an active way of investing in real estate that requires significant starting capital. You can invest in commercial real estate and rent it out for cash flow and profits. However, managing the property and finances as a new investor can be overwhelming. That\u2019s why many new investors invest in syndicated real estate, which gives them the access and benefits of investing without the day-to-day hassle.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>Real estate syndications<\/strong> \u2014 SEC-qualified <a href=\"https:\/\/www.sec.gov\/education\/smallbusiness\/exemptofferings\/rule506b\" target=\"_blank\" rel=\"noreferrer noopener sponsored nofollow\">506(b) offerings<\/a> allow unaccredited investors to gain exposure to real estate that\u2019s managed by another company. While syndications can be great passive income opportunities, they\u2019re hard to find since companies that offer these opportunities to unaccredited investors aren\u2019t allowed to advertise them. So, you\u2019ll have to put in some leg work to find the best real estate syndicate to invest in.<\/li>\n","innerContent":["\n<li><strong>Real estate syndications<\/strong> \u2014 SEC-qualified <a href=\"https:\/\/www.sec.gov\/education\/smallbusiness\/exemptofferings\/rule506b\" target=\"_blank\" rel=\"noreferrer noopener sponsored nofollow\">506(b) offerings<\/a> allow unaccredited investors to gain exposure to real estate that\u2019s managed by another company. While syndications can be great passive income opportunities, they\u2019re hard to find since companies that offer these opportunities to unaccredited investors aren\u2019t allowed to advertise them. So, you\u2019ll have to put in some leg work to find the best real estate syndicate to invest in.<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":3},"innerBlocks":[],"innerHTML":"\n<h3 class=\"wp-block-heading\" id=\"h-how-to-get-into-commercial-real-estate\">How to get into commercial real estate?<\/h3>\n","innerContent":["\n<h3 class=\"wp-block-heading\" id=\"h-how-to-get-into-commercial-real-estate\">How to get into commercial real estate?<\/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The best returns from commercial real estate investments come from identifying opportunities and timing the market for the best time to enter and exit. Let\u2019s look at six main factors behind any successful commercial real estate investor.<\/p>\n","innerContent":["\n<p>The best returns from commercial real estate investments come from identifying opportunities and timing the market for the best time to enter and exit. Let\u2019s look at six main factors behind any successful commercial real estate investor.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-1-networking\"><strong>1.<\/strong> <strong>Networking<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-1-networking\"><strong>1.<\/strong> <strong>Networking<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Your network is your net worth. Establishing a network of commercial real estate industry professionals in the space helps investors stay informed about opportunities and the best commercial real estate deal on the market.<\/p>\n","innerContent":["\n<p>Your network is your net worth. Establishing a network of commercial real estate industry professionals in the space helps investors stay informed about opportunities and the best commercial real estate deal on the market.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Getting in touch with commercial real estate brokers, property managers, and fellow investors can get you one step closer on your journey to owning a commercial property.<\/p>\n","innerContent":["\n<p>Getting in touch with commercial real estate brokers, property managers, and fellow investors can get you one step closer on your journey to owning a commercial property.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Online forums like LinkedIn and Facebook can help you build relationships with real estate agents while giving you access to alpha regarding local real estate conferences, seminars, and trade shows.<\/p>\n","innerContent":["\n<p>Online forums like LinkedIn and Facebook can help you build relationships with real estate agents while giving you access to alpha regarding local real estate conferences, seminars, and trade shows.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-2-market-knowledge\"><strong>2.<\/strong> <strong>Market Knowledge<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-2-market-knowledge\"><strong>2.<\/strong> <strong>Market Knowledge<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Staying on top of the latest trends and developments in the CRE market helps you make informed investment decisions. Publications like <a href=\"https:\/\/commercialobserver.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Commercial Observer<\/a> can help you read the temperature of market conditions. Consuming content about the market also helps you find the best deals and industry events happening locally or nationally.<\/p>\n","innerContent":["\n<p>Staying on top of the latest trends and developments in the CRE market helps you make informed investment decisions. Publications like <a href=\"https:\/\/commercialobserver.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Commercial Observer<\/a> can help you read the temperature of market conditions. Consuming content about the market also helps you find the best deals and industry events happening locally or nationally.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Taking courses related to investing, analysis, property management, real estate development, and real estate law can deepen your knowledge of the real estate space and make you a more informed commercial real estate investor.<\/p>\n","innerContent":["\n<p>Taking courses related to investing, analysis, property management, real estate development, and real estate law can deepen your knowledge of the real estate space and make you a more informed commercial real estate investor.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-3-financial-analysis\"><strong>3.<\/strong> <strong>Financial Analysis<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-3-financial-analysis\"><strong>3.<\/strong> <strong>Financial Analysis<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Financial analysis is a crucial part of the investor toolbox. Knowing how to assess things like cash flow, returns on investment, and financial projections help you find good commercial real estate deals. Here are the steps a financial analyst might take before investing in commercial real estate.<\/p>\n","innerContent":["\n<p>Financial analysis is a crucial part of the investor toolbox. Knowing how to assess things like cash flow, returns on investment, and financial projections help you find good commercial real estate deals. Here are the steps a financial analyst might take before investing in commercial real estate.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>Income analysis<\/strong> \u2014 Evaluation of the property\u2019s current and projected rental income and vacancy rates.<\/li>\n","innerContent":["\n<li><strong>Income analysis<\/strong> \u2014 Evaluation of the property\u2019s current and projected rental income and vacancy rates.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>Expense analysis<\/strong> \u2014 Evaluation of property\u2019s operating expenses like taxes, insurance, utilities, and maintenance costs.<\/li>\n","innerContent":["\n<li><strong>Expense analysis<\/strong> \u2014 Evaluation of property\u2019s operating expenses like taxes, insurance, utilities, and maintenance costs.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>Cash flow analysis<\/strong> \u2014 This is simply the net operating income (NOI) which can be found by subtracting operating expenses from the rental income.<\/li>\n","innerContent":["\n<li><strong>Cash flow analysis<\/strong> \u2014 This is simply the net operating income (NOI) which can be found by subtracting operating expenses from the rental income.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>Capitalization rate analysis<\/strong> \u2014 This helps analyze the risk associated with the property. This figure gives an idea of the annual yield of a property. A higher cap rate means it's a riskier investment with a greater potential return. This can be calculated by dividing a property\u2019s operating income by the asset value.<\/li>\n","innerContent":["\n<li><strong>Capitalization rate analysis<\/strong> \u2014 This helps analyze the risk associated with the property. This figure gives an idea of the annual yield of a property. A higher cap rate means it's a riskier investment with a greater potential return. This can be calculated by dividing a property\u2019s operating income by the asset value.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>Debt analysis<\/strong> \u2014 Evaluation of the property\u2019s current and projected debt obligations like mortgage payments, interest rates, and loan terms.<\/li>\n","innerContent":["\n<li><strong>Debt analysis<\/strong> \u2014 Evaluation of the property\u2019s current and projected debt obligations like mortgage payments, interest rates, and loan terms.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>ROI analysis<\/strong> \u2014 The final step is to project the ROI based on anticipated income and sale price.<\/li>\n","innerContent":["\n<li><strong>ROI analysis<\/strong> \u2014 The final step is to project the ROI based on anticipated income and sale price.<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n\n\n\n\n\n\n\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"\n\n",null,"\n\n",null,"\n\n",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-4-property-evaluation\"><strong>4.<\/strong> <strong>Property evaluation<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-4-property-evaluation\"><strong>4.<\/strong> <strong>Property evaluation<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Most property flippers evaluate the physical condition of commercial real estate properties by visiting it, and this gives them an idea of the potential return they can get by investing in maintenance or renovations.<\/p>\n","innerContent":["\n<p>Most property flippers evaluate the physical condition of commercial real estate properties by visiting it, and this gives them an idea of the potential return they can get by investing in maintenance or renovations.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>This skill is developed by studying comparable properties in an area while analyzing their sale and rental rates. Site visits are necessary to evaluate a property, but once this skill is mastered, the location and outlook of a property can determine optimal price and the projected returns on it.<\/p>\n","innerContent":["\n<p>This skill is developed by studying comparable properties in an area while analyzing their sale and rental rates. Site visits are necessary to evaluate a property, but once this skill is mastered, the location and outlook of a property can determine optimal price and the projected returns on it.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-5-negotiation-skills\"><strong>5.<\/strong> <strong>Negotiation skills<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-5-negotiation-skills\"><strong>5.<\/strong> <strong>Negotiation skills<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Good negotiation skills are what secure favorable terms on an investment. Commercial real estate transactions that maximize profits require reducing costs at all ends. This skill is essential when negotiating leases with tenants, making a property purchase, or selling a property to get the best possible profit.<\/p>\n","innerContent":["\n<p>Good negotiation skills are what secure favorable terms on an investment. Commercial real estate transactions that maximize profits require reducing costs at all ends. This skill is essential when negotiating leases with tenants, making a property purchase, or selling a property to get the best possible profit.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>In short, strong negotiation skills help investors save money, minimize risks, and maximize returns on their commercial real estate investments.<\/p>\n","innerContent":["\n<p>In short, strong negotiation skills help investors save money, minimize risks, and maximize returns on their commercial real estate investments.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-6-learning\"><strong>6.<\/strong> <strong>Learning<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-6-learning\"><strong>6.<\/strong> <strong>Learning<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The value of learning can\u2019t be overlooked. Continual learning not only helps to make informed decisions but also to identify the niche of commercial real estate that you want to specialize in.<\/p>\n","innerContent":["\n<p>The value of learning can\u2019t be overlooked. Continual learning not only helps to make informed decisions but also to identify the niche of commercial real estate that you want to specialize in.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Investors who know more have a competitive edge since their superior understanding of the legal and regulatory regime helps them get better deals and make fewer mistakes. Learning the industry\u2019s asset management practices helps maximize returns and minimize risks.<\/p>\n","innerContent":["\n<p>Investors who know more have a competitive edge since their superior understanding of the legal and regulatory regime helps them get better deals and make fewer mistakes. Learning the industry\u2019s asset management practices helps maximize returns and minimize risks.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":3},"innerBlocks":[],"innerHTML":"\n<h3 class=\"wp-block-heading\" id=\"h-important-tips-for-beginners\">Important tips for beginners<\/h3>\n","innerContent":["\n<h3 class=\"wp-block-heading\" id=\"h-important-tips-for-beginners\">Important tips for beginners<\/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>If you\u2019re new to commercial real estate investing, it\u2019s important to set goals. You should be realistic and devise a strategy that helps achieve specific investment objectives. For example, if you\u2019re looking to build a passive income, you can establish an owner-occupied business on the property or own equity in the tenant\u2019s business.<\/p>\n","innerContent":["\n<p>If you\u2019re new to commercial real estate investing, it\u2019s important to set goals. You should be realistic and devise a strategy that helps achieve specific investment objectives. For example, if you\u2019re looking to build a passive income, you can establish an owner-occupied business on the property or own equity in the tenant\u2019s business.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>It\u2019s crucial not to give in to greed\u2014your goals should be achievable within a reasonable timeframe.<\/p>\n","innerContent":["\n<p>It\u2019s crucial not to give in to greed\u2014your goals should be achievable within a reasonable timeframe.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-start-small-and-diversify\"><strong>Start small and diversify<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-start-small-and-diversify\"><strong>Start small and diversify<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>As a beginner, consider starting small in the CRE market. REITs have changed the investment landscape by enabling you to buy fractional shares of properties. You can minimize risk and get the gist of the market by fractionally investing in different types of properties.<\/p>\n","innerContent":["\n<p>As a beginner, consider starting small in the CRE market. REITs have changed the investment landscape by enabling you to buy fractional shares of properties. You can minimize risk and get the gist of the market by fractionally investing in different types of properties.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>While diversity is never bad, picking a niche and gaining experience in that niche can be beneficial by leading to more successful investments in the future.<\/p>\n","innerContent":["\n<p>While diversity is never bad, picking a niche and gaining experience in that niche can be beneficial by leading to more successful investments in the future.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-pick-a-niche\"><strong>Pick a niche<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-pick-a-niche\"><strong>Pick a niche<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Specializing in a specific property type like retail, office, industrial, or multifamily lets you build a deeper understanding of the market. This can be a game changer for someone who\u2019s just entering the market.<\/p>\n","innerContent":["\n<p>Specializing in a specific property type like retail, office, industrial, or multifamily lets you build a deeper understanding of the market. This can be a game changer for someone who\u2019s just entering the market.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Gain a competitive advantage over other investors in the marketplace<\/li>\n","innerContent":["\n<li>Gain a competitive advantage over other investors in the marketplace<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Networking with people from the same niche creates valuable relationships and helps you draw from the knowledge and experience experts.<\/li>\n","innerContent":["\n<li>Networking with people from the same niche creates valuable relationships and helps you draw from the knowledge and experience experts.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Earn higher returns by avoiding unfamiliar and untested markets.<\/li>\n","innerContent":["\n<li>Earn higher returns by avoiding unfamiliar and untested markets.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Get better commercial real estate deals by relying on your expertise.<\/li>\n","innerContent":["\n<li>Get better commercial real estate deals by relying on your expertise.<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n\n\n\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"\n\n",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-be-patient\"><strong>Be patient<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-be-patient\"><strong>Be patient<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Commercial real estate investing requires a lot of patience. In fact, a lot of strategies that yield high returns often require holding your investments for a long time.<\/p>\n","innerContent":["\n<p>Commercial real estate investing requires a lot of patience. In fact, a lot of strategies that yield high returns often require holding your investments for a long time.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The market sometimes turns illiquid for a few months due to low demand. This is the time to be patient and strategize. New tenants are always around the corner.<\/p>\n","innerContent":["\n<p>The market sometimes turns illiquid for a few months due to low demand. This is the time to be patient and strategize. New tenants are always around the corner.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-work-with-a-commercial-real-estate-agent\"><strong>Work with a commercial real estate agent<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-work-with-a-commercial-real-estate-agent\"><strong>Work with a commercial real estate agent<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>When it comes to commercial real estate investing, working with an agent can be incredibly beneficial. These professionals bring a wealth of market knowledge and expertise to the table, helping investors identify properties that meet their investment goals, negotiate favorable terms and agreements, and navigate the complex legal and regulatory requirements of the industry.<\/p>\n","innerContent":["\n<p>When it comes to commercial real estate investing, working with an agent can be incredibly beneficial. These professionals bring a wealth of market knowledge and expertise to the table, helping investors identify properties that meet their investment goals, negotiate favorable terms and agreements, and navigate the complex legal and regulatory requirements of the industry.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>New investors shouldn\u2019t put all their eggs in one basket. While commercial real estate investing can provide opportunities for lucrative returns, it\u2019s important to have your portfolio diversified into other asset classes like stocks and cryptocurrencies.<\/p>\n","innerContent":["\n<p>New investors shouldn\u2019t put all their eggs in one basket. While commercial real estate investing can provide opportunities for lucrative returns, it\u2019s important to have your portfolio diversified into other asset classes like stocks and cryptocurrencies.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Depending on your risk tolerance and budget, a well-managed portfolio can be diversified into alternate assets like private equity, hedge funds, fine art, and even collectibles like watches, fine wine, vintage comic books, and sports cards.<\/p>\n","innerContent":["\n<p>Depending on your risk tolerance and budget, a well-managed portfolio can be diversified into alternate assets like private equity, hedge funds, fine art, and even collectibles like watches, fine wine, vintage comic books, and sports cards.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":3},"innerBlocks":[],"innerHTML":"\n<h3 class=\"wp-block-heading\" id=\"h-commercial-real-estate-investing-strategies\">Commercial real estate investing strategies<\/h3>\n","innerContent":["\n<h3 class=\"wp-block-heading\" id=\"h-commercial-real-estate-investing-strategies\">Commercial real estate investing strategies<\/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Once you\u2019ve identified your investment goals and picked a niche, there are a lot of investment strategies to choose from.<\/p>\n","innerContent":["\n<p>Once you\u2019ve identified your investment goals and picked a niche, there are a lot of investment strategies to choose from.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>Buy and hold<\/strong>: It\u2019s common to hold the property for a long period of time to generate rental income and capitalize on price appreciation.<\/li>\n","innerContent":["\n<li><strong>Buy and hold<\/strong>: It\u2019s common to hold the property for a long period of time to generate rental income and capitalize on price appreciation.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>Buy, rehab, flip<\/strong>: This strategy requires having a keen eye for property analysis and the network to identify opportunities for the best commercial deals in the market. Commercial properties that are in need of renovation can be acquired, renovated, and resold for a profit.<\/li>\n","innerContent":["\n<li><strong>Buy, rehab, flip<\/strong>: This strategy requires having a keen eye for property analysis and the network to identify opportunities for the best commercial deals in the market. Commercial properties that are in need of renovation can be acquired, renovated, and resold for a profit.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>Development projects<\/strong>: Buying land and developing multifamily apartments, office buildings, warehouses, or retail centers is more work, but can be very lucrative depending on the location. The goal here is to bring up the value of a property and using it to generate income by renting or selling it.<\/li>\n","innerContent":["\n<li><strong>Development projects<\/strong>: Buying land and developing multifamily apartments, office buildings, warehouses, or retail centers is more work, but can be very lucrative depending on the location. The goal here is to bring up the value of a property and using it to generate income by renting or selling it.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>REITs<\/strong>: Real estate investment funds eliminate the need for owning the property. Instead, an investor can create a diversified portfolio of commercial properties and generate rental income through dividends.<\/li>\n","innerContent":["\n<li><strong>REITs<\/strong>: Real estate investment funds eliminate the need for owning the property. Instead, an investor can create a diversified portfolio of commercial properties and generate rental income through dividends.<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n\n\n\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"\n\n",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The strategy you choose should be based on your financial goals, risk tolerance, and budget. You can also use commercial real estate investment platforms to easily access the asset class.<\/p>\n","innerContent":["\n<p>The strategy you choose should be based on your financial goals, risk tolerance, and budget. You can also use commercial real estate investment platforms to easily access the asset class.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p><a href=\"https:\/\/moneymade.io\/discover\/cadre\">Cadre<\/a> is a leading platform that sources the best commercial real estate deals for accredited investors by selling them as high-growth funds. If you\u2019re unaccredited, platforms like <a href=\"https:\/\/moneymade.io\/discover\/streitwise\">Streitwise<\/a> generate an average dividend passive income of 8.96% with a minimum investment of $4,600.<\/p>\n","innerContent":["\n<p><a href=\"https:\/\/moneymade.io\/discover\/cadre\">Cadre<\/a> is a leading platform that sources the best commercial real estate deals for accredited investors by selling them as high-growth funds. If you\u2019re unaccredited, platforms like <a href=\"https:\/\/moneymade.io\/discover\/streitwise\">Streitwise<\/a> generate an average dividend passive income of 8.96% with a minimum investment of $4,600.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":3},"innerBlocks":[],"innerHTML":"\n<h3 class=\"wp-block-heading\" id=\"h-pros-and-cons-of-investing-in-commercial-real-estate\">Pros and cons of investing in commercial real estate<\/h3>\n","innerContent":["\n<h3 class=\"wp-block-heading\" id=\"h-pros-and-cons-of-investing-in-commercial-real-estate\">Pros and cons of investing in commercial real estate<\/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>CRE investments come with pros and cons. Understanding the benefits and challenges associated with the asset class you\u2019re investing in is the key to making money.<\/p>\n","innerContent":["\n<p>CRE investments come with pros and cons. Understanding the benefits and challenges associated with the asset class you\u2019re investing in is the key to making money.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Some of the benefits of commercial real estate investing are potentially higher returns, diversification, and tax deductions. However, it also comes with several challenges like a high initial investment, a complex market, long-term commitment, and the potential to be hurt by economic downturns.<\/p>\n","innerContent":["\n<p>Some of the benefits of commercial real estate investing are potentially higher returns, diversification, and tax deductions. However, it also comes with several challenges like a high initial investment, a complex market, long-term commitment, and the potential to be hurt by economic downturns.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"acf\/pro-con","attrs":{"name":"acf\/pro-con","data":{"pro_icon":"","_pro_icon":"field_652d6dd6b35e4","pro_title":"Pros","_pro_title":"field_652d6df3b35e5","pro_content":"<ul>\r\n \t<li>Stable cash flow<\/li>\r\n \t<li>Long-term leases<\/li>\r\n \t<li>Triple net leases possible<\/li>\r\n<\/ul>","_pro_content":"field_652d6e03b35e6","con_icon":"","_con_icon":"field_652d6e0eb35e7","con_title":"Cons","_con_title":"field_652d6e19b35e8","con_content":"<ul>\r\n \t<li>Impact of economic downturns<\/li>\r\n \t<li>Narrow market for tenants<\/li>\r\n \t<li>Expensive maintenance &amp; overhead<\/li>\r\n<\/ul>","_con_content":"field_652d6e20b35e9"},"mode":"edit"},"innerBlocks":[],"innerHTML":"","innerContent":[]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-pros-of-commercial-real-estate-investing\"><strong>Pros of commercial real estate investing<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-pros-of-commercial-real-estate-investing\"><strong>Pros of commercial real estate investing<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The biggest advantage is cash flow stability due to longer lease contracts with commercial tenants. Apart from stable cash flow, the price of the real estate can depend on how recently it was renovated, the neighborhood it\u2019s in, and what kind of businesses it\u2019s suitable for.<\/p>\n","innerContent":["\n<p>The biggest advantage is cash flow stability due to longer lease contracts with commercial tenants. Apart from stable cash flow, the price of the real estate can depend on how recently it was renovated, the neighborhood it\u2019s in, and what kind of businesses it\u2019s suitable for.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Some businesses sign commercial property leases to maintain the look and feel of a property that\u2019s in line with their brand. So, some retail tenants would sign triple net leases, which makes them responsible for paying all property overheads, including taxes, insurance, and leases.<\/p>\n","innerContent":["\n<p>Some businesses sign commercial property leases to maintain the look and feel of a property that\u2019s in line with their brand. So, some retail tenants would sign triple net leases, which makes them responsible for paying all property overheads, including taxes, insurance, and leases.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Furthermore, commercial tenants are usually large corporations with deep pockets that can afford to maintain the property. This means you won\u2019t likely have to worry about the property being in bad shape if the tenant ever decides to leave.<\/p>\n","innerContent":["\n<p>Furthermore, commercial tenants are usually large corporations with deep pockets that can afford to maintain the property. This means you won\u2019t likely have to worry about the property being in bad shape if the tenant ever decides to leave.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-cons-of-commercial-real-estate-investing\"><strong>Cons of commercial real estate investing<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-cons-of-commercial-real-estate-investing\"><strong>Cons of commercial real estate investing<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>CRE investments can be risky, the main reason being tenant turnover. If the economy is struggling, finding new tenants to occupy commercial real estate can be challenging. The property owner also must cater to the potential tenants\u2019 requirements.<\/p>\n","innerContent":["\n<p>CRE investments can be risky, the main reason being tenant turnover. If the economy is struggling, finding new tenants to occupy commercial real estate can be challenging. The property owner also must cater to the potential tenants\u2019 requirements.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Another downside of commercial real estate is the smaller market compared to residential real estate. Commercial buildings can be bad investments in times of low economic growth and reduced demand.<\/p>\n","innerContent":["\n<p>Another downside of commercial real estate is the smaller market compared to residential real estate. Commercial buildings can be bad investments in times of low economic growth and reduced demand.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>For example, the pandemic increased remote working, which directly impacted the demand for office spaces. This meant new commercial office spaces had trouble finding new tenants and retaining existing ones.<\/p>\n","innerContent":["\n<p>For example, the pandemic increased remote working, which directly impacted the demand for office spaces. This meant new commercial office spaces had trouble finding new tenants and retaining existing ones.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Owning a commercial property also means taking on the hassle of management responsibilities. Finding tenants and handling management, paperwork, and day-to-day operations can be a burden. While you can hire other people to do those things, it\u2019ll cut into your bottom line, which means less take-home profit.<\/p>\n","innerContent":["\n<p>Owning a commercial property also means taking on the hassle of management responsibilities. Finding tenants and handling management, paperwork, and day-to-day operations can be a burden. While you can hire other people to do those things, it\u2019ll cut into your bottom line, which means less take-home profit.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":3},"innerBlocks":[],"innerHTML":"\n<h3 class=\"wp-block-heading\" id=\"h-tech-s-impact-on-commercial-real-estate-investing\">Tech\u2019s impact on commercial real estate investing<\/h3>\n","innerContent":["\n<h3 class=\"wp-block-heading\" id=\"h-tech-s-impact-on-commercial-real-estate-investing\">Tech\u2019s impact on commercial real estate investing<\/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>It\u2019s important to understand trend shifts and how the market is affected. Digitization is having a profound impact on commercial real estate and how businesses operate.<\/p>\n","innerContent":["\n<p>It\u2019s important to understand trend shifts and how the market is affected. Digitization is having a profound impact on commercial real estate and how businesses operate.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-impact-on-retail\"><strong>Impact on retail<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-impact-on-retail\"><strong>Impact on retail<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The shift to e-commerce has reduced the demand for traditional retail spaces, yet it also created new opportunities for properties that cater to online businesses. This means spaces for back office operations and warehouses are in higher demand than ever before.<\/p>\n","innerContent":["\n<p>The shift to e-commerce has reduced the demand for traditional retail spaces, yet it also created new opportunities for properties that cater to online businesses. This means spaces for back office operations and warehouses are in higher demand than ever before.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The steep rise in the e-commerce business increased the demand for industrial properties used for the manufacturing and distribution of merchandise.<\/p>\n","innerContent":["\n<p>The steep rise in the e-commerce business increased the demand for industrial properties used for the manufacturing and distribution of merchandise.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>But digitization hasn\u2019t affected the three \u2018L\u2019s of retail properties: Location, location, location. Brands like Starbucks are always on the lookout for well-situated spots to set up shop.<\/p>\n","innerContent":["\n<p>But digitization hasn\u2019t affected the three \u2018L\u2019s of retail properties: Location, location, location. Brands like Starbucks are always on the lookout for well-situated spots to set up shop.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-impact-on-office-spaces\"><strong>Impact on office spaces<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-impact-on-office-spaces\"><strong>Impact on office spaces<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The rise of remote work has helped businesses reduce costs and improve employee mobility. However, this has also increased the demand for co-working spaces. So, if the space is refurbished with the right blend of innovation and added value, office spaces can be converted into co-working cash cows.<\/p>\n","innerContent":["\n<p>The rise of remote work has helped businesses reduce costs and improve employee mobility. However, this has also increased the demand for co-working spaces. So, if the space is refurbished with the right blend of innovation and added value, office spaces can be converted into co-working cash cows.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>This digitization, however, has not affected the three \u2018L\u2019s\u2019 of retail properties: Location, location, location. Brands like Starbucks are always on the lookout for well-situated spots to set up shop.<\/p>\n","innerContent":["\n<p>This digitization, however, has not affected the three \u2018L\u2019s\u2019 of retail properties: Location, location, location. Brands like Starbucks are always on the lookout for well-situated spots to set up shop.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":3},"innerBlocks":[],"innerHTML":"\n<h3 class=\"wp-block-heading\" id=\"h-is-commercial-real-estate-investing-right-for-you\">Is commercial real estate investing right for you?<\/h3>\n","innerContent":["\n<h3 class=\"wp-block-heading\" id=\"h-is-commercial-real-estate-investing-right-for-you\">Is commercial real estate investing right for you?<\/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Investing in commercial properties can be a valuable opportunity to diversify your portfolio and potentially generate higher returns than residential real estate or stocks.<\/p>\n","innerContent":["\n<p>Investing in commercial properties can be a valuable opportunity to diversify your portfolio and potentially generate higher returns than residential real estate or stocks.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>It\u2019s important to understand the commercial real estate market, the property you\u2019re investing in, and the financial implications before making a decision. Developing skills around financial analysis, property evaluation, and negotiation will set you apart from other investors, lead you to make more informed decisions, and maximize your returns.<\/p>\n","innerContent":["\n<p>It\u2019s important to understand the commercial real estate market, the property you\u2019re investing in, and the financial implications before making a decision. Developing skills around financial analysis, property evaluation, and negotiation will set you apart from other investors, lead you to make more informed decisions, and maximize your returns.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Additionally, setting clear investment goals and building a network of trusted professionals can help you navigate the complex and competitive world of commercial real estate. While there are challenges associated with investing in CRE, the opportunities for growth and tax benefits make it worth considering when adding real estate to your portfolio.<\/p>\n","innerContent":["\n<p>Additionally, setting clear investment goals and building a network of trusted professionals can help you navigate the complex and competitive world of commercial real estate. While there are challenges associated with investing in CRE, the opportunities for growth and tax benefits make it worth considering when adding real estate to your portfolio.<\/p>\n"]}],"_links":{"self":[{"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/posts\/952","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/comments?post=952"}],"version-history":[{"count":0,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/posts\/952\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/media\/1013"}],"wp:attachment":[{"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/media?parent=952"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/categories?post=952"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/tags?post=952"},{"taxonomy":"post_authors","embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/post_authors?post=952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}