Commercial real estate, simply put, is any non-residential land or property intended to generate income or generate profits. Some examples of commercial real estate include industrial parks, hotels, office buildings, shopping centers, apartment buildings, parking lots and warehouses. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay Although investment strategies for commercial real estate are fairly simple, many investors do not fully understand how commercial real estate works as an investment vehicle. Commercial investors typically make money in three ways: first, by purchasing or leasing the property and charging tenants rent in exchange for use of the property, twice through the appreciation in value of the property. property held over time and thirdly by negotiating an agreement between them. a buyer and seller of the commercial property. In this article, let's take a closer look at the second of these commercial investment strategies: The potential return opportunity of a commercial real estate investment can come from appreciation over the period of time the investor owns it and improvements in added value. Unfortunately, this is not always the case and even the best investors can still lose money despite their best efforts and most creative strategies. If demand increases for your property, or in the immediate vicinity of your property, there is a good chance that tenants will be willing to pay a higher rent, and potential buyers will be willing to pay a higher price than what you paid initially to have it removed from your property. hands.Keep in mind: This is just a sample.Get a custom paper from our expert writers now.Get a custom essayJudgment based on supply and demand is not the only way which can increase the value of a property. Many investors take an active “value-add” approach to commercial real estate, making improvements to the property to increase its essential value or ability to generate income. An example of this would be updating the amenities and improving the aesthetic details of a multi-family building. Such updates can allow the landlord to charge higher rent for nicer apartments. Methods other than improving the property could include rezoning an adjacent parcel of land, such as from residential to multifamily, so that more apartments can be built. Any money spent renovating a building can potentially increase the building's sale price in the future..