Commercial real estate focuses on businesses, which includes apartment buildings and other businesses that produce income for their owners. Industrial real estate involves factories and other large businesses. Land is also considered a type of real estate and includes undeveloped land and working farms. Research and development properties are often located in industrial parks.
Residential
Residential real estate refers to residential properties that are zoned for individual use and are not commercially used. This type of real estate consists of single-family homes, apartments, condominiums, townhouses, triple-deckers, and quadplexes, among other types. In contrast, commercial real estate consists of land used for businesses, such as office buildings, hospitals, and hotels. Industrial properties include factories and warehouses, as well as parking lots and other areas where businesses operate.
Purchasing residential real estate can also involve financing. There are many sources of residential real estate financing, including conventional loans, FHA loans, VA loans, and Fannie Mae and Freddie Mac mortgages. Most mortgages require a 25% down payment, but investors who house-hack can qualify for low-down mortgages. The leases on residential properties typically last 12 months, but there is some risk of higher tenant turnover if the lease is shorter.
Commercial
The main types of commercial real estate are office buildings, warehouses and retail space. Most of these properties are located outside of residential areas and are occupied by a single tenant. Because of this, industrial real estate is often more expensive than office space. Retail spaces often contain anchor tenants, which boost foot traffic and improve the value of the property. Industrial real estate includes distribution centers, manufacturing hubs and warehouses. Many types of commercial real estate are categorized as special economic zones. Some commercial real estate properties are also mixed-use, with office space, restaurant space, and retail units.
Most businesses, however, choose to lease their commercial real estate space instead of buying it outright. While purchasing a piece of commercial property news may be more expensive, leasing allows them to have more flexibility with their facilities. In addition, most large companies prefer to keep cash in their pockets to conduct business. Commercial real estate is typically owned by deep-pocketed companies. However, the most valuable properties are large and located in dense urban areas. Here are some common formulas and concepts to help you determine the value of a commercial property.
Industrial
Once considered a niche asset class, industrial real estate is now a hot commodity. With the growth of eCommerce, companies are increasingly competing to locate distribution centers near their customers. However, the demand for industrial real estate is a bit different from the demand for commercial properties. Listed below are the top reasons to invest in industrial property. And don’t forget the vacancy rate! Industrial real estate has a sub-three percent vacancy rate!
Class A industrial property is a new building with high quality features, and is often in a prime location. These properties usually have low cap rates and do not require frequent maintenance. Class A properties are generally more desirable for larger corporations than for smaller businesses. However, they are not the most affordable options. Class B properties are not the best investment for every company, and they aren’t always the best place for a start-up business.
Research and development
For accelerating growth of real estate industry, R&D is of utmost importance. With growing globalisation and investor-friendly government policies, India is still one of the preferred locations for real estate development worldwide. Other reasons for the fast growth of real estate industry in India are large population base, rising income levels and rapid urbanisation. Hence, R&D is needed to boost the industry and accelerate overall economic growth of the country.
The Center for Real Estate Technology at Columbia University is a dynamic platform that bridges the knowledge gap between academia and industry. It is the knowledge conduit between New York City’s global finance industry and the world-class academia of Columbia University. It helps in creating transformative technology for the built environment. With the help of R&D, students can enhance their careers and contribute to the industry. The Center also organizes forward-looking events to discuss the state of the industry and its application of advanced technologies.