Commercial property
Business Services, Commercial Real Estate Lending

A Beginner's Guide to Commercial Real Estate

Commercial real estate refers to properties used for business purposes, such as office buildings, retail spaces, warehouses, and apartments. Unlike residential real estate, which focuses on housing, commercial real estate focuses on generating income through rent or lease payments.

Investing in commercial real estate can be a lucrative venture, but it can also be risky. Before investing, it’s important to understand the basics and do thorough research. Here are some tips for those interested in commercial real estate:

  1. Research the market of the area you’re interested in. This includes understanding the local economy, the demand for commercial real estate, and the supply of available properties.

  2. Consider the location. The location of the property is an important factor in the success of a commercial real estate investment. A property located in a high-traffic area, with easy access to transportation and amenities, is likely to be more successful than a remote property.

  3. Look for stable tenants. The success of this investment is heavily dependent on the tenants occupying the property. Look for tenants with a history of stable, long-term leases, and avoid tenants with a history of frequent turnover or late payments.

  4. Consider the condition of the property. If the property requires significant renovations or repairs, this can be a costly expense and should be taken into account when determining the potential returns on the investment.

  5. Work with a professional. Investing in commercial real estate can be complex and there are many factors to consider. A real estate professional, such as a broker or financial advisor, can help you make informed decisions and navigate the process.

Investing in commercial real estate can be a great way to diversify your investment portfolio and generate steady income. Keep these tips in mind to ensure the success of your investment.

Orange County’s Credit Union has Commercial Loan Officers who can help you along the way. Send us a message at or call us at (714) 885-7437 to speak to one of our experts.