Commercial Property or Commercial Real Estate refers to buildings or land intended to generate a profit. Commercial real estate is considered a more stable investment than other types of real estate due to the lease lengths, which are often several years or more. Commercial real estate is different than working with residential real estate which is classified by its use into many categories. Residential real estate deals with single family homes, duplexes and small apartments. But commercial real estate will be dealing with office buildings, retail stores, warehouses, and more.
Most real estate investors try to stay away from cities with rising housing costs and high cost of living as they are much less likely to bring a high ROI than investments in more affordable cities. This means there is a high demand for single family rentals and apartments that offer affordable rental rates. It also means you shouldn’t invest in markets that are already over-priced – there will not be enough renters looking for expensive properties as time goes by.