Nine Types of Commercial Real Estate in New Jersey
by real on July 19, 2024
Investing in real estate is a very popular business in New Jersey. There are two main types of real estate investments: residential and commercial. Residential properties are usually smaller and family-oriented, whereas commercial properties can be anything ranging from a shop to a storage warehouse.
Commercial properties usually provide more returns on investment, which is why most investors who want to put in big money and expect good returns always prefer exploring commercial property listings in New Jersey.
What is Commercial Real Estate?
Commercial real estate properties have the potential to generate profits either through rents or resale after holding. Office buildings, plazas, shops, restaurants, hotels, duplexes, etc., are all examples of commercial real estate, and if you are planning to buy commercial properties in New Jersey, you can consider any of these.
Nine Types of Commercial Properties in New Jersey!
If you go out to search for commercial property listing platforms in New Jersey, you will find a wide range of properties, including vacant land, agriculture spaces, and much more.
These are different types of properties, and in this section, we have listed the ten major types.
Office Buildings
Office spaces can be categorized based on their sizes and capacity. From large-rise buildings to single tenant/sitting capacity, you can find a huge variety in commercial property listings. You will find a lot of options in both urban and suburban neighborhoods in New Jersey. One of the biggest benefits of investing in office buildings is that they can secure annual leases.
Industrial Property
Just like office buildings in New Jersey, industrial properties can also be categorized in different sizes. These kinds of properties can be used to store things and can also be turned into a place of business. If you own some kind of manufacturing business, you can invest in industrial properties. Some of the most common types include light assembly, cold storage, showrooms, bulk warehouse, heavy manufacturing, etc.
- Multi-Housing Projects
Multi-housing projects are quite similar to residential properties but are on a larger scale. Residential properties become commercial when more than one unit is built on the same land. You can take an example of apartments and flats. These kinds of properties might be a bit expensive but can get the highest returns on investment. You can either sell individual units and still own the land or rent them out.
- Hotels and Hospitality
Hotels are not a popular option when it comes to commercial property listings in NJ. This is because hotels require a lot of investment. Hotels serve as short-term residencies, which is why the returns are low and gradual. Moreover, along with residences, in hotels, you have to provide entertainment, meals, and all kinds of services, which have their own cost. Boutique hotels, casinos, resorts, etc., are all examples of hospitality-related commercial properties.
- Life Sciences Properties
Life science properties are also a popular type of real estate investment in New Jersey. Ever since the COVID-19 pandemic, a lot of attention from investors has been shifted towards proactive and reactive healthcare facilities. Life science is one of the fastest-growing markets. If you are a partner related to the medical world or have good knowledge of this industry, you can invest in these. Pharma shops, biotech labs, etc., are examples of life science properties.
- Retail Spaces
Another lucrative real estate option is retail spaces. Investing in retail is just like putting your money in offices. These properties can have single or multiple tenants. Regional malls, shopping centers, community centers, outparcel, and power centers are all examples of retail spaces. Note that these kinds of properties also require a big investment. You must only invest in these if you have plenty of money to spare.
- Purpose-Based Real Estate
There are some properties that you would find in commercial property listing platforms in New Jersey that do not fall into a specific category as they serve special purposes. These include churches, schools, theaters, and even amusement parks. You can make money if you own a private school, a park, or a theater, but note that there are a lot of expenses and dependencies involved in these properties.
- Storage Properties
In the last three years, the demand for storage properties has increased relatively, and this is only because of their minimal operational cost, zero upkeep requirements, and ample capacity to handle different kinds of tasks. You would be surprised to know that over the last ten years’ storage property construction has increased by over 900%. These kinds of properties are influenced least by market dynamics, which is why it is wise to invest in them.
- Land Stands
If you are planning to buy commercial properties in New Jersey, you can also consider land stands. These are no doubt one of the riskiest but, at the same time, can get you great returns. If you are looking for undeveloped commercial properties for sale in New Jersey, the responsibility of generating revenue will fall on your shoulders. But if you are buying agriculture or infill land, you can start working and making money.
Benefits of Investing in Commercial Real Estate Properties in NJ
Here, we have mentioned some of the most important benefits/advantages of investing your money in the lucrative market of NJ.
- Commercial real estate in New Jersey can deliver major returns on your investment.
- Commercial properties offer extended lease terms compared to residential properties.
- Commercial real estate can create both short-term and long-term gains.
- Government sectors would offer incentives and help during economic downfalls.
Drawbacks of Investing in Commercial Real Estate
Let us now discuss some of the common drawbacks and cons of putting your money into commercial properties in New Jersey.
- The process of buying and selling properties can take a lot of time.
- Initial investment requirements in terms of finances and documentation are quite high and complicated.
- Turnover and return investment can be time-consuming and sometimes costly.
- Investing in commercial properties also requires proper knowledge of real estate rules & regulations, and laws.
End Words
The commercial real estate market of New Jersey is extremely diverse. From urban properties to suburban office spaces, you would find a wide range of opportunities for investors, developers, and businesses.
If you are looking to buy commercial properties in New Jersey, it is important that you first read about the different types that we have discussed in this guide.
We hope that after reading this article, you will know about the top commercial property options and will be able to make a wise investment according to your set budget and financial plan.
