Commercial Real Estate is used solely for business purposes and is leased out to provide a workspace. Ranging from a single gas station to a huge shopping center, commercial real estate includes retailers of all kinds, office space, hotels, strip malls, restaurants and convenience stores.
One of the biggest advantages of Commercial Real Estate is the attractive leasing rates. In areas where the amount of new construction is either limited by land or law, commercial real estate can have impressive returns and considerable monthly cash flow
The best reason to invest in commercial real estate is the earning potential. Commercial properties generally have an annual return off the purchase price between 6% and 12%, depending on the area, which is a much higher range.
Investing in commercial real estate can be lucrative and serve as a good hedge against the volatility of the stock market