The Differences Between Residential and Commercial Real Estate

There are few decisions as wise as going out and investing in property. Owning real estate is an amazing way for you to build your assets and find exciting new forms of income. When you are first setting out into the world of purchasing property, you might be leaning towards residential options. While these might be a fine way to spend you money, it is important for you to understand that there are other choices worth pursuing out there. Commercial real estate might be one of the better areas for you to consider when you are thinking about putting your money into real estate. To help you along your way, here are a few points to keep in mind on why commercial property is different than residential options.


One of the major differences between the choice of commercial and residential is the pricing. Residential property is valued on a whole different scale than commercial counterparts. With commercial real estate, the value of the property is based on usable square footage. The reason for this is somewhat obvious: businesses want to be able to get the most from their money and will not want to get behind a choice that has too much unusable surface area. Another big difference between the two options is the overall cost. Residential properties are often much less expensive than commercial ones. This is due to the fact that a commercial space is going to attract businesses and keep cash flow coming. When considering your options, be sure to consider how you might be able to make more off of commercial property than residential.


While there are plenty of differences between the choices, there are also a couple of similarities. One of the biggest factors that these two options have in common has to do with foreclosure. There is a popular myth amongst investors stating that commercial real estate cannot go into foreclosure. This is actually false information, and thousands of properties go into foreclosure every year. Finding out all of the major differences and similarities between your options will help you to make the right calls with your money


There are plenty of ways for you to go about finding the perfect real estate to invest in. While you might have been considering residential options at first, armed with this new knowledge you might be feeling a tad more curious about commercial real estate and what it might be able to do for you. Take your time and research the facts before you make any calls. Once you have all of the information required, you will be all set to head out and make a choice that is bound to yield you some nice results.