If you’re intent on developing, acquiring, or owning, or flipping real estate, you can better come to an understanding of the peculiarities of what you’re facing by dividing the real estate into several categories.
Industrial real estate investments often have significant fee and service revenue streams, such as adding coin-operated vacuum cleaners at a car wash, to increase the return on investment for the owner.
Retail properties consist of shopping malls, strip malls, and other retail storefronts. In some cases, the landlord also receives a percentage of sales generated by the tenant store in addition to a base rent to incentivize them to keep the property in top-notch condition.
Mixed-use properties are those that combine any of the above categories into a single project.
The bank, which lent him the money, took out a lease on the ground floor, generating significant rental income for the owner. The other floors were leased to a health insurance company and other businesses.