Small commercial properties, often starter investments for new real estate investors, represent an accessible entry point into the market. These properties, typically lower in cost than larger developments, can include single-tenant retail spaces, small office buildings, or light industrial units. For example, a small standalone building leased to a local bakery could be considered a representative example.
Investing in entry-level commercial real estate offers several potential advantages. These smaller ventures can provide a steady income stream and potential appreciation in value. Historically, such properties have served as a foundation for building larger real estate portfolios, allowing investors to gain experience and gradually scale their investments. Furthermore, they can play a vital role in supporting local economies by providing spaces for small businesses to thrive.
