Investing in commercial real estate in the Roanoke Valley or near Smith Mountain Lake can be an extremely lucrative move, but deciding which type of property to invest in can be confusing. By getting a deeper understanding of all your options, you can make an informed decision that minimizes risk and maximizes your return. The following are the most common types of commercial real estate options for investors:

Office space

Office buildings fall into two general categories: urban and suburban. Urban offices are often tall buildings or skyscrapers located in core sectors of a city, while most suburban offices are smaller buildings often grouped into office parks. Offices are grouped into four different classes:

• Class A: These top-quality office buildings compete for the most premium tenants and have above average rents. They include state-of-the-art facilities, refined touches and exceptional accessibility.
• Class B: These buildings have average rental prices and attract a wide range of tenants. They have good to fair finishes and systems.
• Class C: Tenants in these buildings only require functional space and expect to pay below average rents for the area.
• Medical: Offices with doctors, dentists and other healthcare services fall into their own subcategory.

Retail

The shops and restaurants you likely visit every day are part of the retail sector of commercial real estate. These can comprise everything from a standalone building with one large tenant to multi-tenant buildings with or without an anchor store driving traffic to the property. The retail sector is somewhat complicated as many different metrics dictate how a property should be classified.

Industrial

Usually located outside of core urban areas on major transportation routes, industrial buildings can fulfill a wide range of purposes:

• Heavy manufacturing facilities typically contain large machines that produce products or refined materials for assembly at other facilities. These properties tend to be highly customized.
• Light assembly locations put parts together to form final products. They can also be used for temporary storage of goods.
• Bulk warehouse properties are typically used as distribution centers for major retail businesses. They often require access for a large number of trucks.
• Flex industrial locations have a mix of office space and manufacturing space. They are often used for small to medium size businesses.

Multifamily

Multifamily properties can be great commercial real estate investments. There are many different types of properties in this category, including high rise, mid-rise, garden style, and walk up. There are also specialized properties for specific groups of people, including seniors, students, and low-income families. A multifamily property will usually require a dedicated property management service.

Hotel

Hotel properties cover facilities that offer hospitality services, including lodging, meals and other amenities. Hotels may be further classified into several categories, including full-service, extended stay, boutique and others, depending on what sort of services they offer.

Land

Don't forget land investments! Whether you're interested in undeveloped land or a parcel that has been used previously, an investment in land offers lots of possibilities for someone who understands the market and has a vision for the property.

Special purpose

Some commercial properties are highly specialized or simply don't fit any of the listed categories. Those are special purpose properties.

To learn more about the commercial real estate market in Roanoke and Smith Mountain Lake and learn what options best fit you, contact me today. You can reach me at sonya@sonyadickinson.com or 540-353-0213.