Commercial Real Estate Investing: The Path to Building Your Wealth

By putting a percentage of your money into real estate, you are not only diversifying your portfolio further, but helping grow your net worth much quicker. 

What is Commercial Real Estate?

Investing in commercial real estate (often abbreviated as “CRE”) means you are making investments in buildings or land intended to generate a profit, either from capital gains, dividends, or rental income. 

The Five Types of Commercial Real Estate

Office Buildings

These can be buildings like skyscrapers to the more traditional suburban office buildings you see in your town. 

The Five Types of Commercial Real Estate

Retail

In commercial real estate, retail buildings are also widely popular investment assets. Think of places like restaurants, malls, community centers, drug stores, etc.

The Five Types of Commercial Real Estate

Multifamily

You might not have thought of this at first, but apartment complexes and high-rise condos fit in the “CRE” category. If the building has more than four units for living, it can be classified as commercial.

The Five Types of Commercial Real Estate

Special Purpose 

These kinds of properties include amusement parks, stadiums, airports, car washes, self-storage, etc.

The Pros of Investing in Commercial Real Estate 

Great portfolio diversification:

Historically if the stock market is suffering, commercial real estate is typically not affected. So these investments is a popular option to protect against volatility of the stock market.

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