As we recover from the financial fallout of 2020, many people are trying to wrap their heads around the best types of investments. While commercial real estate can bring some great returns, it can also be tricky to get in at the right time and make the right choices.
Here are the top three commercial real estate investments:
1. Properties in growing cities. Certain cities across the U.S. are seeing tremendous growth as businesses relocate and millennials take control of the market. Investing in properties in those areas is a smart decision, as you have a good chance of lucrative returns. However, this can always be a bit risky, as you never know if cities will continue to grow or fall out of fashion.
2. Properties with triple net leases. A triple-net lease means the tenant pays all of the costs of maintaining the property. You as the owner simply collect the funds. This is often a very lucrative investment, provided the businesses continue to do well.
3. Properties with multiple tenants. At the moment, properties with multiple tenants, like office buildings, RV parks, self-storage facilities, and more, are the most reliable commercial real estate investment. While each has their unique quirks, the simple fact is that with more tenants, you have more guaranteed monthly income, and if someone falls behind on their payments it doesn’t make you fall behind as well.