Commercial Real Estate
Commercial Real estate includes income-producing property, such as office buildings, restaurants, shopping centers, hotels, industrial parks, warehouses, and factories. Commercial property usually must be zoned for business purposes.
It is possible to invest in commercial property directly, or through Real Estate Investment Trusts or Real Estate Limited Partnerships. Investors receive income from rents and capital appreciation if the property is sold at a profit.
Investing in commercial property also entails large risks, such as nonpayment of rent by tenants or a decline in property values because of overbuilding or low demand.