“Is commercial real estate right for you?”
Imagine this:
You’ve bought a home—maybe even picked up a rental or two. Now your eyes are drifting toward office buildings, retail storefronts, or even a warehouse. You're asking yourself: Is commercial real estate really my next move?
When many people start building their net worth, they turn to real estate. Most begin in residential—buying their first home, or maybe a single-family rental. And once that process starts, one rental can become two, then four, and beyond. As your portfolio grows, so do your goals for income and wealth. That growth mindset often leads you toward commercial real estate.
But here’s the truth: commercial real estate is a whole different world compared to residential.
What Makes Commercial Real Estate Different?
While residential real estate includes single-family homes and small multifamily units (four units or fewer), commercial spans a much wider range: retail, office, industrial, large multifamily (5+ units), medical, hospitality, and more. Each asset type brings different tenants, management needs, lease structures, and income potential.
You’re also less limited in how you can use or reposition the space. And the performance of a commercial property isn’t based on nearby "comps"—it’s driven by how much income the property generates.
The Pros of Commercial Real Estate
Higher income potential (typically higher rents and longer lease terms)
More professional tenant relationships (business-to-business vs. personal leases)
Valuation based on income, not comparable properties
Attractive tax advantages like depreciation and cost segregation
The Cons (Because It’s Not All Upside)
Higher upfront costs (you’ll need more capital to get started)
More complex financing (think commercial loan products, not 30-year fixed)
Active management required for some assets (unless it’s a Triple Net property)
Market sensitivity (office, for example, has changed dramatically in recent years)
Questions to Ask Yourself
Before jumping into commercial real estate, here are a few questions to seriously consider:
What’s my risk tolerance?
Are you comfortable putting more capital at stake in exchange for potentially higher returns?Do I have the capital to enter?
Some properties may need work, others may require 25–35% down, and some lenders won’t go high on loan-to-value.Will I self-manage or hire a professional?
Do you want to be hands-on with your tenants and maintenance, or would hiring a property manager be smarter?
So… Who Is Commercial Real Estate Right For?
If you can confidently answer those questions—and you're still interested—commercial might be a great next step.
Business owners who want to own their space
Investors seeking stronger passive income streams
Buyers with capital looking to diversify their portfolio
You don’t have to start with a 50,000-square-foot warehouse. Look for small-scale deals like a retail condo, a small medical office, or a neighborhood NNN property.
Still Not Sure?
That’s totally okay. Commercial real estate isn’t for everyone—but it might be for you.
Start educating yourself: Learn about terms like cap rate, NOI, and lease structure. Talk to a broker (like me) to get insight on your market and opportunities. Most importantly, take it step by step.
Let’s Talk.
Whether you're a first-time buyer, a business owner, or an experienced investor—I'd love to help you find the right deal and guide you through the process.
Matthew Parker
Commercial Real Estate Broker
📞 (970) 985-5124
📧 matthew@brayandco.com