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After being burnt out on residential real estate, most of us begin our deep dive into commercial real estate investing. We realize the valuation process is not at all in our hands and begin dreaming big of owning a commercial property we can force into appreciation rather than waiting for the right time to buy and sell. 

However, big dreams of owning a skyscraper or major metropolitan building are not as practical as what people end up investing in commercial real estate. If you want to find a niche in commercial real estate that will actually put your money to work for you, try one of these five often-overlooked options: 

Commercial Multifamily 

If you’ve had successes in residential real estate and want to stay within your comfort zone, commercial multifamily is a great way to branch out. Unlike smaller multi-family units, large apartment complexes are valued the same as commercial real estate but are managed more similarly to residential properties. With rental rates soaring, these options are also becoming more popular for young renters without the means to buy. 

Small multitenant complexes

You don’t have to go big to earn big in commercial real estate. Smaller multi-tenant buildings such as corner strip centers can offer you a bigger piece of the pie when working with a syndicate. Additionally, they bolster your risk against multiple tenants to ensure that you have the rents of other tenants to back up your income if one defaults. 

Data Centers

As office spaces rapidly switch from being in-person to online, data centers are projected to become more and more valuable both economically and as an investment opportunity. As a result, these companies are likely to be steadfast tenants as their need for space and steady income continues to rise. 

Single Tenant

While skyscrapers and major industrial complexes may seem like more glamorous real estate investments, smaller buildings occupied by national tenants can be great money makers for commercial investors looking to expand their portfolios. Gas stations, convenient stores, and smaller retail centers are profitable buildings that provide a long-term stream of cash flow. 

Mobile home parks and RV resorts

When the likes of Sam Zell and Warren Buffet tout something as a great investment opportunity, you know it must be true. These moguls were able to double and triple their returns by investing in mobile parks as the housing market crashed and lower-income, versatile housing became more popular. If you’re not ready to dive into the management of a mobile home park, a hospitality-based option like an RV park also offers lower expenses and easier management for a great value. 

Commercial real estate is one of the most rewarding sectors to invest in if you can, and with Legacy, you have the option to do so in a simple, hassle-free way. To learn more about investing with Legacy, contact us for a consultation.