4 Different Types of Offices You Can Invest In

4 Different Types of Offices You Can Invest In

27 May 2021
 Categories: Real Estate, Blog


When it comes to commercial real estate, there are lots of different categories of real estate you can invest in. One overarching category you can invest in is office buildings. Office buildings can be broken up into several different categories.

Central Business District (CBD)

The central business district refers to buildings located in high-density development areas situated in the heart of the city's business or financial district. CBD buildings are usually either high-rises or mid-rise buildings. They often include structured parking and include elevators. These types of buildings are where larger businesses like to place their headquarters or put their name on the building. Unfortunately, these types of buildings are expensive to purchase.

Commercially Zoned Homes 

Commercially zoned homes are old residential homes or apartments that have been rezoned for commercial usage. Commercially zoned homes tend to attract smaller businesses and local professional service companies, such as accounting firms or law offices. These properties tend to attract clients who want more of a home-like feel and are attracted to a space they can use as an office with a full kitchen and a backyard. In addition, commercially zoned homes can be nice to invest in, as you generally only have to deal with a single tenant and low turnover and get to enjoy good rental rates as well.

Suburban Office Buildings

Another type of commercial office building is suburban office buildings. These buildings are located outside of the core of the city. The rent for these types of buildings tends to be more affordable than renting in the city. These buildings may be low-rise or mid-rise buildings. Often, multiple office buildings are connected to create a campus-like setting of various offices. Suburban office buildings may offer additional amenities outside of office space to attract tenants.

Medical Office Space

Finally, you can rent a medical office space. Medical office space is specifically designed to meet the needs of the medical field. Medical tenants tend to invest a lot in building a space to fit their needs and tend to stay in place for more extended periods. The cost of getting them in may be high, but once they are there, they tend to be great tenants.

With office buildings, you may have to put up more capital investment to get the property ready for tenants. However, office space often commands a high rental value, allowing you to make your money back and grow your investment.