What do YOU think of "COMMERCIAL" ? Weigh in!!

Question

When a person mentions "Commercial Real Estate" , just about everyone has a different idea of what it means. To some it's multi family, others consider office buildings, retail, industrial, boat slips, or parking lots commercial property. Though each of those even have sub categories, sometimes they ALL get lumped together and get a bad rap! Weigh in...

1. WHAT DO YOU CONSIDER COMMERCIAL PROPERTY?
2. Do you invest in commercial property? Why not if you don't?
3. Have you ever owned commercial property?
4. If you had the money to invest in commercial, would you?

1. WHAT DO YOU CONSIDER COMMERCIAL PROPERTY?
2. Do you invest in commercial property? Why not if you don't? 
3. Have you ever owned commercial property?
4. If you had the money to invest in commercial, would you?

Jon Klaus · Answer

Looking for a 12 step program in Texas....

Scott Sewell · Answer

1. WHAT DO YOU CONSIDER COMMERCIAL PROPERTY?
All RE Investments not less than 4 units.
2. Do you invest in commercial property? Why not if you don't?
Our investments are primarily "commercial" residential (i.e. multi's)
3. Have you ever owned commercial property?
Yes
4. If you had the money to invest in commercial, would you? 
Looking at more right now. Love the multiplier effect (& passive income) of increased NOI!

Dennis Tierney · Answer

Karen M.I invest only in multifamily "commercial" presently and do so because I want it managed for me allowing me time to do my out of real estate job and also because I have neither the skills nor interest in doing the property management. I want to spend my time in real estate in acqusition and investor recruitment.

Sean Brennan · Answer

I have seen commercial used to describe retail, office, industrial, and multifamily properties; but, in some contexts, it is strictly office and retail (industrial is industrial, multi-family is residential, and office and retail is commercial use... it depends :)

I think once you start getting too big ($10,000,000+) there are too many institutional cash buyers that push yields way down.

Haven't invested yet... hope to someday!

Karen Margrave · Answer

Jon Klaus You're definitely ADDICTED!!

Jon Klaus · Answer

1. WHAT DO YOU CONSIDER COMMERCIAL PROPERTY? 
All non residential, and residential with 5+ units.

2. Do you invest in commercial property? Why not if you don't? 
Yes

3. Have you ever owned commercial property? 
Yes

4. If you had the money to invest in commercial, would you?
Yes.

Sorry for the shortness, but I'm typing on my phone.

Theresa K. · Answer

1. Retail, office, industrial, flex space.  I know over 5 units is technically commercial, but the tenants are still residential tenants.  Commercial tenants are different.  With commercial tenants you have better working hours (no phone calls at midnight) and less personal drama.  If there's a contract dispute, the attorneys step in.
2. no.  cost is high in this area
3. no, but have worked for several property management companies (mom/pops and big names)
4. yes

Derrick Moore · Answer

Non Resi, !!!!!

Jennifer Lee · Answer

Frank Gallinelli
Question: what commercial property suits you best?

I only own 2 retail units and stumbled on first, and purchased our second.

#1: we were looking to invest for passive income and where we were commercial cost the same as a SFR.

commercial  rent was  2700/mo, 
residential   rent was  1700/mo.

same sqft, taxes.  BUT I didn't have to pay utilities, management fee and taxes for my commercial.

I found a GREAT tenant (good business lady) and she rented 2 yrs and it turned into 4 yrs! I didn't hear a pip out of her! she kept my place is great shape, made all the repairs, I just reimbursed her.

IT WAS HER PLACE of BUSINESS.

Meanwhile,  my condo tenant, a great tenant too, but I had to fix this and that (no biggy), but I had to pay tax, management fee.

#2 we moved to our current location, and found ourselves in the same shoes, and chose to buy another retail.

we bought a building with tenant in it that didn't want to move, but owner wanted out.

economics aren't great but they have been in business for 4 yr. the only reason I bought it was because there was a tenant. commercial vacancy is HIGH here.

the only downside is LEASING and ZONING issues.... in process to re-leasing #1... and it's been a pain having to ask permission from everyone

Scott Sewell · Answer

Quick edit. I noticed my original post said "not less than 4 units". Should have been 5.

What do YOU think of "COMMERCIAL" ? Weigh in!!

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