What Type of Commercial Property is Most Profitable?

Since my friend has been in the real estate business for a while, I asked him what type of commercial property is most profitable before making an investment. He told me that office space is the most profitable commercial real estate. In addition, he told me about several types, which I have included below for your reference.

What is the Most Profitable Commercial Real Estate?

My friend told me that it can be a wise decision to invest in commercial real estate, and the following types of it are typically more profitable than others. 

• My friend said that this is the most profitable type. In major cities like Pune, Bangalore, and Mumbai, there is a huge demand for modern office spaces due to the growth of the IT and business industries. 

• He said the companies here are prepared to pay a premium amount for fully furnished offices to maintain an effective work environment. 

• Moreover, the rise in the startup culture has also increased demand for office space in India. They pay for a small one-room office to a multi-story office building.

In India, investing in industrial space like manufacturing factories and warehouses can also be profitable. My friend told me that as you know the Make in India campaign aims to increase manufacturing, and there is an increasing need for industrial areas where logistics hubs and production facilities can be established. He said that industrial and commercial real estate investments can provide beneficial returns because:

• You can get a reliable source of cash flow from tenants.

• Leases with a long tenure provide steady revenue.

• You need to spend less money on maintenance.

My friend said that you can obtain triple net lease benefits by investing in retail centers, which include shopping malls, retail complexes, and high street retail complexes. He told me that you can get the following benefits:

• Significant return on investment

• Gain from more steady tenant occupancy and longer lease terms.

Apart from these three, my friend suggested that I can also invest in commercial spaces like multifamily properties, theaters, and hotels. I finally decided to invest in office space.

I hope you get an idea of what type of commercial real estate is the most profitable.