Popular Types Of Commercial Property To Invest In

Investing in commercial property can help you diversify your portfolio and increase your bottom line. However, with so many options to choose from you may be wondering what type of investment is best for you. Here are a handful of popular commercial investments to consider when trying to make up your mind.

Retail Buildings

Retail buildings can be anything from a large strip or shopping mall to one single building that can house an independent business. There are no constraints on who can rent out a retail space and little limitation on what they’re used for, for example as dance or fitness studios, restaurants, bars and insurance offices.

You can still achieve a diverse portfolio on single-use retail properties however; in fact some cities have retail shops on the street level with apartment spaces available above. This carries you the extra benefit of being able to collect more rent per square foot by owning a multi-purpose space.

Industrial Buildings

Industrial buildings can include anything from small warehouses to large manufacturing plants and often include a large amount of workspace or storage in addition to one or several small offices. One of the key advantages of owning a large industrial building is you can probably charge a higher rent and the property is multi-functional, bringing you a more diverse portfolio.

The downside is the building can be difficult to rent if it’s not in an area that has a high demand for that kind of space.

Apartment Buildings And Multi-Faceted Homes

This is probably one of the most popular type of investments, because multi-family homes and apartment buildings offer a wide variety of choice. You can begin by purchasing a small building with only a few units available for rent. Once you’re established, you can invest in larger multi-unit buildings or developments to increase the amount of rental income you generate each month.

Before you consider larger building purchases, make sure you calculate all the overhead and operating costs involved, including maintenance and repair costs, upkeep fees and property taxes.

Office Buildings

This type of commercial property can serve as a great investment because corporate renters often stay in their premises for a long time and are more likely to pay rent on time.

Office buildings are classified by their construction and location. A “Class A” building would be deemed highly desirable when location and construction are factored in, whereas a “Class C” building would be considered less desirable because of its age and location.

There are some office buildings that have a design that can accommodate multiple businesses and others are a little less flexible when it comes to floor plan.

Prices vary tremendously based on factors such as the building’s class rating, square footage, location, access to nearby amenities. These issues will affect how difficult or easy it is to rent out space in a commercial office building, so be careful to assess all aspects of your purchase before you buy.


Large investor groups tend to back hotels with every shareholder having a personal stake in the business’s fortune. If you are interested in investing in this type of commercial property, you must be comfortable with not being hands on with the daily running operations of the business. Your role is more of a source of funding who gets paid dividends when the hotel is performing well.

If being hands-on is more your preference, it may be worth considering looking into speciality, boutique or extended-stay hotels that have an independent owner rather than an international brand attached to it

This can be particularly profitable if you can purchase some multi-unit vacation rental properties.

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on pinterest
Share on email



Don’t miss out on our opportunities

Advanced Search

Try Selecting Multiple Options to search

Recent Articles:

The Complete Guide for Private Landlords Facing Coronavirus

The fightback against Coronavirus has begun, with countries across the world declaring war on the killer virus, enforcing lockdowns and …

Read More

Meet us at MIPIM 2020!

The Prideview Group will once again be in the South of France this year for MIPIM! Having done 93 deals …

Read More

Prideview concludes 93 transactions nationwide in 2019

The final year of the decade will always be remembered for the incredible uncertainty created by the protracted Brexit negotiations …

Read More

Current Opportunities

Current Opportunity

Countrywide Estate Agents, Gloucester

Unit 18, Kingsway Local Centre, Thatcham Avene, Quedgeley, Gloucestershire, GL2 2GT

Tesco Express, Gloucester

Unit 11, Kingsway Local Centre, Thatcham Avene, Quedgeley, Gloucestershire, GL2 2GT
Current Opportunity
£ 240,000

Day Lewis Pharmacy & Flat, Harwich

151 High Street, Dovercourt, Harwich, Essex, CO12 3AX

The George Pub, Kingsbury, Greater London

The George, 234 Church Lane, London, NW9 8SN
Current Opportunity
£ 700,000

Vacant Unit (A1 / A3 / D2 Usage), Slough

53-61 Windsor Road, Slough, SL12EE
Current Opportunity
£ 900,000

Vacant Former Optician & Flat, Wembley, Greater London

26 Ealing Road, Wembley, London, HA0 4TL
Current Opportunity
£ 200,000

M & Co, Bridlington

12/13 Prince Street, Bridlington, North Humberside, YO15 2NW
Current Opportunity
£ 360,000

Coral, West Ealing, Greater London

217 Uxbridge Road, West Ealing, London, W13 9AA

Medivet, Rotherham

Medivet Medical Centre , Thurnscoe Business Park, Burrowfield Road, Thurnscoe , Rotherham , South Yorkshire S63 0BH

The Home of the Blue-Chip Investor

Click the logos below to see relevant investment properties