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Commercial real estate investments

There are many different kinds of commercial real estate that can be purchased in Maryland. By definition, commercial real estate is any property that is owned for the purpose of producing income. This means that for investors, commercial real estate could be any type of property including raw land, an apartment complex or an office building.

One type of commercial real estate that can be very profitable for investors are office properties. An office property could be anything from a single-tenant building to a skyscraper. Office properties are grouped into three categories depending on the condition of the buildings and the accessibility of the location. Class A buildings are usually newer buildings in prime locations, Class B buildings are usually in need of a little improvement, and Class C buildings are usually older and inconveniently located.

Another large category of commercial real estate that investors are often interested in is retail and restaurant sites. These buildings might be freestanding structures, or they could be units that are located in shopping centers or strip malls. Because they have many tenants already and are seen as having little risk, investors are often more attracted to commercial properties that are located in retail centers.

A wise investment in commercial real estate could be very profitable. However, a person who pays too much for a property that is in a poor location could end up regretting the decision. Before making an investment in a commercial real estate property, an investor might want to consult an attorney to ensure that the property in question has no hidden zoning issues or other problems.

Source: 42 Floors, "What Is Commercial Real Estate? The Definition of CRE", Dana Hamson, March 3, 2015

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