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What are the Benefits of Investing in an Industrial Building OKC?
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The industrial building OKC sector of commercial real estate covers efficient and practical spaces across a range of shapes, sizes, and intended purposes. There are many advantages that come with investing in an industrial building for lease OKC. Here are the top reasons that an investor may choose to focus on an industrial building for lease in Oklahoma.
   Benefits of Investing in an Industrial Building for Lease in Oklahoma
High Demand Across Industries
Industrial buildings such as fulfillment centers, self-storage facilities, and big-box warehouses are in high demand for investors. This is because they are also in high demand for potential tenants. Most industrial properties are adaptable and can be used across industries; as such, one of these commercial properties is not likely to stay vacant for long. Additionally, because these properties are always needed, they effectively withstand market downturns.
  Long Term Industrial Building OKC Tenants
As with all commercial property types, the industrial sector of commercial real estate has much longer lease terms than residential real estate, which leads to long-term and steady income for investors. Because of the amount of work it takes to relocate to different properties, industrial property tenants are often willing to sign longer lease terms. This extended time makes the investment even more stable.
  Low Maintenance for Investors and Landlords
When compared to residential real estate, all types of commercial real estate are easy for investors to maintain. Industrial properties are particularly low maintenance. Of course, investors still need to consider the costs of upgrades, repairs, and renovations. Because these properties do not have to appeal to customers in addition to tenants, the focus will be on function rather than form.
  Impressive Return on Investment
Industrial buildings have an impressive ROI due to a combination of the above benefits. The longer lease terms, reduced tenant turnovers, resistance to market fluctuations, and relatively higher rental rates are especially appealing benefits for commercial real estate investors.
   Looking for an Industrial Building for Lease OKC?
At Horizon Commercial Real Estate, we have a variety of high-quality commercial properties, including industrial buildings. Get in touch to learn more.
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What Do I Need to Know When Leasing a Commercial Space?
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When a business in the commercial or industrial Oklahoma sector rents a property, it must fill out a commercial lease. When compared to residential leases, leases for spaces like industrial buildings in Oklahoma have longer terms and more open regulations. They also offer greater negotiation flexibility.
  Before you begin looking for an "industrial building for sale near me," you need to know how to get the best return on it. To do this, consider everything from a tenant's point of view to ensure it can be rented out at your desired rate:
●              What should the tenant know about the area's zoning laws, nuisance laws, and environmental expectations?
●              What improvements and actions can you make to show potential tenants that you are a reliable landlord?
●              What will the tenant's rental rates be, and what additional fees or bills will they handle?
   Before Leasing Industrial Buildings in Oklahoma, Define:
The Parties, Industrial Oklahoma Property, and Lease Terms
For any commercial property, the lease defines and describes the landlord, tenant, and premises. Each name should be correct in order to be legally standing. If someone is registering as an LLC or corporation, it should list the business as a tenant (not the individual's name). The lease term should also be defined. This determines how long the tenant is legally allowed to stay at the property. For commercial leases, the terms are often for multiple years.
  The One-Time and Ongoing Costs and Expenses
The landlord and tenant must have an understanding of many factors. Two significant ones are the rent and security deposit. In addition to the monthly rent rate, tenants must consider the penalties for paying late. Landlords often require security deposits to handle damage caused by the tenant. The landlord and tenant must also know which party will handle the following:
●              Insurance and property taxes.
●              Water, gas, electric, and other utilities.
●              Interior and exterior maintenance, repairs, and modifications.
●              Local nuisance laws (such as noise or scent).
●              Various additional costs like security and parking.
   Looking for an Industrial Building for Sale Near Me?
Visit Horizon Commercial Real Estate
to find your ideal property.
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How to Invest for Annuities with Commercial Real Estate OKC
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In commercial real estate OKC, an "annuity" is a transaction that helps an investor place funds in a portfolio that returns a regular annuity. More simply, when investing in commercial real estate in Oklahoma, an annuity is a tool that secures a steady income (when done correctly).
You may decide to invest for annuities while you look for "commercial real estate near me."
   Benefits of Annuities for Commercial Real Estate in Oklahoma
Annuities are useful as they allow investors to invest in several properties instead of one. This transaction minimizes risks and maximizes the potential ROI. There are many advantages of investing in annuities, including:
  Tax-Deferral
For any annuity type, investors benefit from a tax deferral. Once the initial investment is placed, any future taxable gains or interest are locked into the property.
  Income Stream
Because annuities provide a return on both the principal and any gains, investors benefit from a steady income stream.
  Principal Protection
One significant benefit of a fixed annuity is that it offers principal protection. Variable annuities also offer some form of principal protection.
   Types of Commercial Real Estate OKC
Three of the most popular methods for investing in commercial real estate annuities are:
  Do It Yourself
The benefit of a DIY investment is that you can purchase your own annuities, allowing for high levels of personal control within the investment. The drawback of this investment type is that you must manage everything yourself, which can become time-consuming.
  Real Estate Investment Trust
Investing in a REIT allows investors to diversify their portfolios across various classes. The long-term data REITs provide offer key information on commercial market cycles. From there, you must decide whether to invest in a non-traded or publicly-traded REIT.
 Sponsor Via Syndication
For commercial real estate syndications, multiple investors pool funds so they can purchase a larger asset than they would be able to as individuals. These investments are passive, involve less money out of pocket, and are often highly stable.
   Commercial Real Estate Near Me At Horizon Commercial Real Estate, we have a variety of quality properties.
Get in touch
to learn more.
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Is a Warehouse a Good Investment in Oklahoma?
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There are many types of commercial real estate in Oklahoma, so it can be difficult to determine which property type to invest in. If you research "commercial real estate near me," you will likely find many available properties, such as offices, apartment complexes, and warehouse buildings in Oklahoma.
   Before You Invest in Commercial Real Estate in Oklahoma
For any type of commercial property, it is essential to make sure that it is a worthwhile investment. Before you invest in a property, consider the following:
  Appearance
While a property's interior is important, its exterior makes the first impression on potential tenants. Determine whether you need to refresh the exterior; this may be anything from a fresh coat of paint and updated landscaping to a new parking lot and security fence.
  Price Range
It is essential to make sure that you can afford every part of the investment. This includes factoring in the costs of necessary repairs and renovations. You may also consider making optional updates in order to appeal to additional potential tenants.
  Location
When choosing a property, tenants will consider whether they have competitors in the area and whether they will get enough customers there. As such, you should also consider these factors. Additionally, a property's location can significantly affect its price and rent rates.
   Are Warehouse Buildings in Oklahoma a Good Investment?
Warehouses are a good investment. As an increasing number of people frequently shop online, there is also a growing need for warehouses to hold that inventory. As such, renting warehouses out to businesses is often an excellent investment. The investments are also good because:
●              While many commercial property types are low-maintenance, warehouses are especially hands-off for investors.
●              The property's efficiency, safety, and security are important; however, the property's appearance is often not a significant factor for tenants.
●              Tenants may be willing to sign on to longer lease terms in comparison to office spaces or physical retail locations.
Quality Commercial Real Estate Near Me To find your next commercial investment opportunity,
visit Horizon Commercial Real Estate
. We have a variety of high-quality commercial properties that are ideal for any investor.
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What Do You Need to Understand About a Sale Leaseback OKC?
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A sale leaseback OKC is a financing option that improves a commercial property owner's cash flow without interrupting their daily business operations. Before looking for a "sale leaseback near me," it helps to know more about this financing opportunity.
   What is a Sale Leaseback OKC?
A sale leaseback in Oklahoma is a transaction agreement between two parties regarding the use of a property, in which:
●              The initial owner of the property agrees to sell their property to a buyer or investor.
●              The initial owner then agrees to lease out the same property from the buyer or investor.
By doing this, the former property owner can stay in that property at a pre-determined rate and time (usually a minimum of seven to ten years). The lease terms and rates may be based on:
●              The seller/tenant's determination of market value.
●              The buyer/investor's financing cost.
●              The seller/tenant's credit rating.
●              The market rates of return.
Because there is already a tenant in place, the buyer/investor will have a cash flow shortly after purchasing the property. While sale leasebacks are used for many commercial property types, they are frequently used for offices, warehouses, and land.
  Most sale leasebacks follow the structure of a triple net lease (NNN lease). In a triple net lease, the seller/tenant agrees to pay any costs designated under the lease along with real estate taxes, insurance, and common area maintenance.
   Benefits of a Sale Leaseback in Oklahoma
The Seller/Tenant Can:
●              Convert equity in the commercial property into cash.
●              Establish their rental rates and various term deals.
●              Use capital previously invested in real estate for other uses.
●              Continue occupying their current property at locked-in rates.
●              Deduce rent payments as business expenses.
  The Buyer/Landlord Can:
●              Benefit from a cash-flowing asset backed by a long-term lease.
●              Deduct expenses and interest payments on their income tax return.
●              Stay protected from volatile CRE market swings.
●              Receive a higher return rate when compared to conventional arrangements.
●              Obtain a consistent return on investment with relatively low risk.
   Looking for a Sale Leaseback Near Me?
To find your next investment, visit Horizon Commercial Real Estate.
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How Do You Know if a Commercial Property Is a Good Investment?
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OKC commercial real estate offers consistent returns, passive income, and potential for significant growth. Because potential tenants are always looking for commercial buildings for rent OKC, it is important to make good investment decisions when researching "commercial real estate near me."
  No individual factor determines if a commercial property is a good investment. In addition to the property's quality and location, some significant factors in determining whether an investment is successful are when, what, and how you invest.
   Before Investing in OKC Commercial Real Estate
Consider the Specific Commercial Buildings for Rent OKC
While residential properties are strictly residential, commercial real estate covers a variety of property types. The five main sectors are office, retail, industrial, multifamily, and special use. Each of these has a unique supply and demand, profitability, and yield, which vary based on the specific market area.
  Understand the Area's Market Cycles
Unlike residential properties, the values of commercial properties rely significantly on market cycles. Before you invest in a property, research many of the area's market cycles, including those for the economy, GDP, and unemployment rates.
  Know the Area's Supply and Demand
Before you invest in a specific property type, you need to understand the geographic market area. For example, there may be a mass national demand for warehouses; however, if the market area you invest in is oversaturated with warehouses, you will not get the ROI that you would receive in other areas.
  Have Contingency and Capital Reserve Funds
While it is essential to be as prepared as possible, there is some level of uncertainty with any investment. Setting aside cost contingencies will help with any unexpected issues. A capital reserve fund is a useful investment that can help with long-term improvements and future unexpected expenses.
  Conduct Thorough Due Diligence
The due diligence period is set for prospective buyers to research every aspect of their
investment opportunity. Take full advantage of this time by researching everything you can, and consider conducting property inspections, surveys, and any other reviews.
   Looking for Commercial Real Estate Near Me?
Visit Horizon Commercial Real Estate to find your next investment.
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Do Commercial Properties Increase in Value?
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If you plan to invest in commercial real estate OKC, you may wonder if commercial properties can increase in value over time. As with any property type, a commercial property's value will fluctuate with the market cycle. However, there are some steps to take that will increase the property's long-term value.
 Horizon Commercial Real Estate's Guide to Increasing Value
Maximize the Space
Adding to the property will significantly increase its value, especially when adding in-demand elements, like parking lots or storage areas. Reconfiguring the property by splitting larger spaces into smaller units can also help, as can completing unfinished areas.
  Refresh the Exterior
A relatively fast and affordable way to improve value is refreshing the exterior. Consider repainting the building, and replace siding when necessary. Keep the property clean and add quality landscaping.
  Update and Modernize
Your property's utility systems should be up-to-date and comparable to (or ahead of) those in surrounding properties. For the best impact, use high-quality and efficient HVAC, water heating, and light systems.
  Create a Name
Naming the property creates memorability. The name can be directly related to the location or property type, or it may be more obscure.
  Update Signage
All signs should be prominent and easy to read. The signage should attract attention and accurately represent the property's purpose.
  Increase Security
A secure property appeals to tenants and can lower your insurance premium. Utilizing an alarm system, gates, and shutters shows that you take care of your property.
  Know the Neighborhood
Pay attention to the sale and lease rates of other commercial properties in your area. Consider what is lacking in the area and find out what there is a local demand for.
  Avoid Vacancies
Keeping tenants on your property is the most effective way to add value to your investment, especially if those tenants are reliable.
  Choose the Right Management
Your property management company should be efficient. If there are missed opportunities to reduce expenses, or if the property is being mismanaged, hire a different company.
 If you plan to invest in commercial real estate in Oklahoma, visit Horizon Commercial Real Estate to find the best properties.
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What is a Better Investment, Residential or Commercial Property?
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If you want to start investing in properties, you must decide whether you will invest in commercial real estate in Oklahoma or residential real estate. Each type has its benefits and challenges, so there are many factors to consider
when making your choice.
Defining Commercial and Residential Real Estate
What is Commercial Real Estate? Commercial real estate involves commercial properties and residences with five or more units. When you invest in commercial real estate in Oklahoma, there is a wide variety of potential investments, as shown by the range of available properties and land tracts held by businesses like Horizon Commercial Real Estate.
What is Residential Real Estate? Residential real estate involves properties that range from single-family homes to residences with up to four units. These properties allow investors to have a more active role in the properties when compared to commercial property investors.
Choosing Your Investment Type
Commercial Real Estate Benefits ● Higher Returns: cash flow and returns are higher than in residential real estate because a greater risk yields greater rewards ● Qualified Tenants: larger companies often back commercial tenants, so they may take better care of your property ● Triple Net Leases: through these leases, you handle the mortgage, and your tenants manage property expenses and real estate taxes ● Longer Lease Terms: tenants staying five to ten years causes lower turnover costs, lower vacancy rates, and a higher guarantee of a positive cash flow ● Increasing Value: a commercial property’s value is related to the revenue it generates, so successful tenants cause a high cash flow
Residential Real Estate Benefits ● Cost of Entry: residential property investments can be more affordable, and you can later segue into commercial properties ● Economic Crisis Turnover: all property investors are affected by economic downturns, but residential investors may be less likely to lose tenants
● Lenient Zoning Laws: residential investments involve more lenient and smaller-scale rules and regulations compared to commercial investments
The question of which investment type is better depends on what you are looking for. If you decide to invest in commercial real estate, visit Horizon Commercial Real Estate to find the best properties in Oklahoma.
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Is It Worth Buying Commercial Property?
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Investing in Commercial Real Estate OKC is does come with risks, but there are also high rewards. You need to consider the question, “Is it worth buying commercial property?” before you decide to invest in commercial real estate in Oklahoma.
Why Invest in Commercial Real Estate in Oklahoma? There are several reasons why commercial real estate is a good investment. The common ones include: ● A fixed-rate loan rather than an increasing rent ● Tax breaks for capital gains and expenses ● Freedom and control update and use the building as you wish ● Possible income from rent ● A diversified portfolio
These are all excellent reasons to invest in CRE. However, is it worth buying commercial property?
What to Consider While owning a commercial property might give you the opportunity to make changes, you still have to abide by strict zoning laws and regulations. Converting a warehouse into a shopping destination, for example, might not happen if without changes to the zoning.
Pay attention to the zoning along with the condition of the building. Remember that you are ultimately responsible for it once you make the purchase.
If you do decide to purchase commercial real estate, you should begin with the financing. Most commercial loans are: ● Conventional mortgages ● Bridge loans ● SBA 504 loans ● Hard money loans You will also need earnest money, which is a larger amount of money upfront than you would if you rent property, so it is something to keep in mind as you move forward.
Commercial real estate values can fluctuate. The events of 2020, for example, have caused the value of some properties to decline. In reality, however, this has created an opportunity for people interested in investing in commercial real estate OKC to get good deals on properties that are likely to increase in value.
Of course, you should always have the help of an expert when you look into real estate. A full-service brokerage firm, such as Horizon Commercial Real Estate, will be able to help you navigate the intricacies of commercial real estate, which will help you decide if now is the time for you to invest in a commercial property.
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How Do I Buy My First Commercial Property?
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Commercial real estate in Oklahoma is an excellent investment choice for an involved and dedicated investor. Here are a few steps to take to help make the best long-term commercial real estate OKC investment choice.
Do Your Research There are many types of commercial real estate in Oklahoma to invest in. A helpful first step to investing is choosing a niche and becoming an expert. While it is important to create a diverse portfolio, it helps to focus on one property type when you first begin.
Before selecting a property type, learn more about the industry by joining investment groups, reading articles and blog posts (like those featured on Horizon Commercial Real Estate), listening to podcasts, and speaking with established investors.
Select Your Property Type and Strategy After learning more about the industry, make your choice between the five primary types of commercial properties: multifamily, office, retail, industrial, and hospitality. Once you have chosen a property type, select your investment strategy:
● Land banking: purchasing tracts of land that someone else will develop on ● Development: buying land to develop on ● Fix and flip: purchasing and upgrading a property ● Wholesale: buying under contract to sell to another investor or owner-occupant ● Owner-occupied: purchasing a property to run your own business out of ● Value-add: buying, rehabbing, renting, and refinancing a property ● Passive: limiting the amount of buying and selling within your portfolio
Start Investing Learning how to underwrite investments is essential. You will need to track various factors to determine the expected returns, including the purchase price, estimated rehab costs, projected rent rates, and financing information.
Underwrite Deals Frequently As you begin, underwriting one deal every day can help you know what to look for in a property and what you want to get out of investing. This practice will help you make strong decisions.
Make Offers Often If you are serious about investing, a recommended starting point is making one offer every week. Because you are frequently viewing and underwriting properties, you should find enough properties worth investing in to do this.
Visit Horizon Commercial Real Estate to learn more about commercial real estate OKC opportunities.
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Horizon Commercial Real Estate is a client-focused, full-service brokerage firm specializing in leasing, tenant representation, investment sales and development with a passion to deliver expert knowledge, precision execution and winning solutions to meet your real estate goals.
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Horizon Commercial Real Estate is a full-service brokerage firm specializing in sales, leasing, management of all types of commercial real estate in OKC.
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How Does a Lease Benefit Both Landlord and Tenant
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For residential or commercial real estate, there is usually an option to rent on a monthly basis or to set up a lease between landlord and tenant. Whether you are a tenant looking for a new place to rent or a new landlord searching for landlord representation in Oklahoma, it helps to know some of the many benefits that come with a lease for tenant and landlord.
How Does a Lease Benefit Both Landlord and Tenant?
As a contract, a lease between the landlord and tenant allows the lessee to use the property in exchange for specific payments while both parties follow a specific set of rules and guidelines. When compared to a month-to-month rental agreement, a lease for tenant and landlord has a lower monthly rent rate because the tenant is committing to a longer tenancy.
Choosing to sign a lease as a rental agreement helps both tenant and landlord in different ways. There are more answers to “how does a lease benefit both landlord and tenant?” than apply to each party specifically.
What are the Specific Benefits for Landlords?
Although leases have lower rent rates than monthly rental agreements, landlords can still earn a greater amount of money in the long run. In general, the longer a tenant stays, the lower the operating cost that the landlord must handle.
The excessive turnover that occurs with shorter rental agreements is highly expensive for landlords, especially because they must repair physical damage to the property more frequently. With month-to-month contracts, there may be extended periods where a building remains empty, so it will not bring in any funds; using a lease agreement can prevent this.
What are the Specific Benefits for Tenants?
For tenants, one of the benefits of signing a lease instead of a month-to-month rental agreement is due to the lower monthly rent rate. Tenants also benefit because the terms and conditions agreed upon by both parties can not be changed until after the lease term is completed. To see available Oklahoma commercial properties near you or to learn more about landlord representation in Oklahoma, visit Horizon Commercial Real Estate.
#Commercial Real Estate in Oklahoma, #Invest in Commercial Real Estate in Oklahoma, #Commercial Real Estate Okc, #Horizon Commercial Real Estate
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Buying vs Leasing Commercial Property
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When it comes to commercial real estate in Oklahoma, you will face the question of whether you should buy or lease. There are pros and cons of each, and you should choose the best option based on your needs.
Buying vs Leasing Commercial Property
Why Purchase a Commercial Property?
Buying commercial real estate in Oklahoma is an investment. The benefits of purchasing property are:
●Creating equity in your property
●Potential tax breaks
●The potential income from rentals
●You control your property
●The value may appreciate
Why Avoid Purchasing?
While purchasing a property is an investment, there are some disadvantages:
●There is immediate spending for a down payment
●It requires bank financing
●The owner has liability
●The risk of property losing value
●Potential penalties for early payments
Why Rent a Commercial Property?
Rental properties have their own benefits to consider:
●No down payment improves liquidity
●Costs are fixed for each month
●It is easy to change locations
●Potential tax breaks
●The landlord holds liability Why Avoid Renting Commercial Property?
There are also reasons to avoid renting in Oklahoma:
●You do not create equity
●You cannot create passive income
●The cost of rent is more than a mortgage
●Your landlord has control
lease to Buy Commercial Properties
You can also lease to buy commercial properties. This agreement requires an option to purchase, which is also called a lease option. If this option is added to the lease, the tenant may choose to buy the property when the duration of the lease. When entering a lease-to-buy agreement, both the seller and the buyer will agree on the purchase price of the property. They will also determine how much of the rent will be paid towards the purchase price as well as the length of the commercial lease. Finally, both parties will agree on who handles the property maintenance. This article is an overview of buying and selling commercial property. Before making a final decision, consider discussing the matter over with a local commercial real estate expert. A professional will better understand your options as well as the current market. You might be able to afford more than you think.
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Different Types of Commercial Real Estate Property
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If you decide to invest in commercial real estate in Oklahoma, it helps to know more about the types of commercial property. The types of commercial real estate can range anywhere from duplexes and small restaurants to office skyscrapers and stadiums. Commercial Real Estate Property Types The types of commercial property are office, retail, industrial, multi-family, hotel, mixed-use, land, and special purpose.
Office:
This group ranges from suburban buildings in office parks to urban skyscrapers and high-rises. Office properties are split into Class A, B, and C. Class A is the highest quality in the best location, and C may be in an undesirable area with a lower quality.
Retail:
These are multi-tenanted or single-use buildings that house stores or restaurants. Properties range from strip malls and small-store shopping centers to 2 million square foot regional malls that feature big-box retailers.
Industrial:
These are mainly located outside of urban areas on transportation routes. The properties vary greatly and include anything from customized heavy machinery buildings that must be entirely renovated for new tenants to easily converted flex industrial buildings.
Multi-Family:
This group involves all rental residences larger than single-family units. As the go-between for residential and commercial real estate, the group includes anything from duplexes to special-purpose housing communities and high-rise buildings with over 100 units.
Hotel:
This group includes hotel chains and independent hotels. The hotels range from full-service for short trips to limited-service for extended stays. This group also includes independent or chain resorts and casinos.
Mixed-Use:
These can be a mixture of any of the other types of commercial real estate. This group usually consists of retail or restaurant properties located below offices or residences.
Land:
This includes undeveloped land (greenfield or agricultural land), previously developed urban areas that are now vacant (infill), and areas previously used for industrial or commercial purposes (brownfield).
Special Purpose:
Any other commercial real estate property that does not fall into a specific category is "special purpose." This miscellaneous classification includes amusement parks, zoos, parking lots, stadiums, and more. Contact Horizon Commercial Real Estate in Oklahoma to learn more about the available commercial real estate property types.
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