According to Statista, commercial real estate investment transactions totaled $875 billion in 2021 in the United States. Investing in commercial real estate offers a wealth of opportunities, but some of the most profitable options often go unnoticed.
While many investors focus on well-known properties, several other types of commercial real estate can offer significant returns. Exploring these lesser-known opportunities can diversify your investment portfolio and potentially lead to hidden gems with less competition and attractive profits.
Industrial warehouses
Industrial warehouses are a key example. These properties have seen a surge in demand with the rise of e-commerce. Investing in warehouses can be a smart move. They often need lower maintenance than other property types and have long-term lease agreements, providing stable income.
Small business office spaces
Small business office spaces are another area often overlooked. As more entrepreneurs and startups emerge, the demand for small, flexible office spaces increases. These properties can be particularly attractive in urban or suburban areas where larger office buildings may not be as feasible.
Medical facilities
Medical facilities are a unique investment opportunity. The healthcare sector continues to grow, and these properties often have long-term tenants like healthcare providers or medical professionals.
Automotive properties
Automotive properties offer another niche investment opportunity. Car repair shops and service stations are essential for local communities. They can also provide steady income, especially in areas with high vehicle traffic.
Self-storage units
Self-storage units are a low-maintenance investment option that can yield high returns. With the growing need for storage space by both individuals and businesses, investing in self-storage can be a wise decision, especially in densely populated or rapidly growing areas.
When you think about investing in commercial real estate, consider these often-overlooked opportunities. Each offers unique advantages and can be a valuable addition to your investment portfolio. Remember, the key to successful investment is not about following the crowd. Instead, find those hidden opportunities that others might miss.