What is Commercial Real Estate?

Las Vegas Commercial Real Estate is the broad category of properties that generate income instead of being occupied by people. Multi-family buildings fall into this category as do hotels and hospitals.

Other types of commercial real estate include special purpose, retail space, medical office space, land, data centers, cellphone towers and affordable housing. Each sector has unique risk-return drivers to consider.

Office space is an important component of commercial real estate, and it may be for rent or for sale. A business’s size and industry can have a significant impact on the type of office space required. There are many factors to consider when selecting an office location, including proximity to clients and employees, zoning, safety, parking, and more.

Commercial office space comes in all shapes and sizes, from a glass and steel skyscraper in Manhattan to a one-story brick building in Des Moines. The location of an office can make or break a company’s ability to attract customers and recruit talent. Employment growth is generally a big driver of demand for office space, especially in industries that require large amounts of administrative work.

There are a few different types of office buildings, and each is typically classified according to its quality and age. Class A office spaces are premium properties with modern infrastructure and amenities, typically found in high-rise buildings in urban or metro areas. Class B office spaces are functional facilities that offer a good value but not necessarily the latest and greatest in office design. Class C office space is less desirable and often found in suburban locations.

A business that wants to buy or lease office space must decide whether to invest in a new construction project or a renovated existing structure. Buying office space generally involves larger upfront costs, such as a down payment and loan application fees, but it can provide long-term stability. Leasing, on the other hand, provides lower upfront costs but can be more risky if property values or rents fall. In addition to the difference in upfront costs, owning office space can be more expensive than leasing, as owners must pay property taxes and insurance.

Retail Space

Retail space is a type of commercial real estate that focuses on bringing in foot traffic to your business. These spaces are often found near other businesses that can draw in customers, such as grocery stores. They also typically have large glass windows that display products or mannequins, which are attractive to passersby. Retail properties can be found in a wide range of sizes and locations, from malls full of big-name retailers to standalone neighborhood boutiques.

Before choosing a retail space, it’s important to understand your needs and goals. For example, how many customers do you need to attract? Do you need ample parking for your employees and customers? How much product do you need to store in the space? Once you’ve established your needs, it’s time to start shopping around for the perfect space.

It’s important to find a space that meets your business’s needs, while also considering the cost of the rent. While you want to avoid paying more than you need, it’s equally important to make sure you have enough room to grow. Be sure to carefully review the lease before signing, as these documents can have significant ramifications for your business.

Purchasing commercial property is generally considered to be a riskier investment than renting, as it can take longer to close on a deal and may have higher vacancy rates. However, if you’re looking for a long-term investment, purchasing a commercial property can be a great option.

If you’re ready to purchase commercial real estate, the team at Rosetti Properties can help. We’ll walk you through the process from start to finish, helping you find the perfect space for your business. Contact us today to get started!

Industrial Space

Industrial space is the property type that’s used for manufacturing, storing and/or shipping goods. It’s often equipped with specialized infrastructure that supports specific industrial operations, including high ceilings, loading docks and bay doors, and a variety of power sources.

It’s also common for industrial spaces to feature ample floor space and a flexible layout, making them suitable for multiple types of business. Ample floor space allows for expansion of warehouse operations, and flexible layouts allow for easy reconfiguration to meet evolving business needs. Industrial spaces are also typically situated near major transportation hubs for seamless distribution and logistics functions.

The market for industrial space in the New York City metropolitan area has slowed down this year after two years of booming growth in e-commerce, but many brokers believe it’s still a solid investment. Ryan Nelson, a managing principal at Turnbridge Equities who’s developing the largest new industrial project in New York City with his Bronx Logistics Center, says there are still plenty of opportunities for investors looking to buy into a dynamic industrial space.

He points out that buyers are particularly focused on clear height in industrial buildings, a crucial metric that dictates stacking capacity and machine placement. A recent AEBOV report reveals that properties with clear heights of 18 feet or more command prices 20% higher than those with lower clear heights.

It’s important to note that although e-commerce continues to drive industrial space demand, the overall market has slowed down this year due to rising interest rates and economic uncertainty. As a result, landlords must carefully balance maximizing rents with minimizing tenant turnover and associated expenses. This is why it’s essential for CRE professionals to stay abreast of changes in the industrial space marketplace and understand how these shifts can impact the performance of their investments.

Mixed-Use Space

Unlike traditional office and retail space, mixed-use spaces combine residential and commercial space within the same building or area. Oftentimes, these spaces also offer recreational or entertainment opportunities for tenants and visitors. The types of spaces that can be included in a mixed-use property are limited only by the imagination and creativity of developers and city planners.

In addition to the obvious benefits of being close to shops, restaurants and offices for workers and residents, mixed-use spaces encourage social interaction by making it easy for people to meet up or spend time together. The physical proximity of these spaces also increases convenience, reduces commute times and supports a more sustainable way of living. Adding greenery to the landscape and incorporating public areas into mixed-use developments can further enhance these benefits.

Mixed-use properties can be a great option for investors looking to diversify their real estate portfolio. They typically offer a higher return than single-use properties and can provide a steady stream of rental income from both residential and commercial tenants. In the event of a commercial downturn, investors can still count on income from residential renters to offset any losses from their business ventures.

Investing in mixed-use commercial space can be a challenging proposition, but it’s an opportunity that shouldn’t be ignored. As a commercial landlord, it’s important to take the time to understand your local market and zoning laws before pursuing any potential investment opportunities. This will help you maximize your profits while ensuring that the spaces you offer are well-suited for your target audience and their unique needs. This will also help you avoid costly mistakes that can undermine your long-term profitability and success.

Multi-Family Space

A multifamily space in commercial real estate includes multiple units that are rented to tenants for housing purposes. Examples include duplexes, triplexes and fourplexes. These are sometimes referred to as apartment buildings, although that term may also be applied to co-ops and single-family homes that are owned and operated by an association of homeowners or renters rather than an individual.

Investing in multifamily spaces is often a more affordable option than other property types, and this type of investment can produce good returns. It’s a smart choice for investors who are comfortable with the financial risk of renting out a property, as losses to vacancies can have an impact on cash flow.

Real estate investors can further divide multifamily space into three property classes: Class A, Class B and Class C. Class A multifamily properties are the best, offering the most amenities and high credit-rated tenant profiles. Class B properties offer less amenities and a mix of tenant profiles, while Class C property tends to be older and lower-quality.

Multifamily spaces can be a great choice for families seeking plenty of room, or for individuals who want to take advantage of the rental market and generate income from their home. In addition, they can be an excellent investment opportunity for those looking to get into the real estate game without investing in a single-family or condo.

As a whole, the different categories of commercial real estate provide valuable insights into the various facets of this real estate industry. Understanding how these categories differ in terms of purpose, investment potential, valuation and definitions will help you better assess the opportunities that are available to you when buying commercial real estate.