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Commercial Real Estate Louisiana

A guide to the various kinds of commercial real estate management and land development investments.

Local Companies

Hebert and Hitzman Capital Management
985.613.0395
4600 Highway 22 Suite 8
Mandeville, LA

First Metro Agency
504-348-3131
1810 Barataria Blvd
Marrero, LA

Louisiana Accelerated Equity, LLC
225-573-8894
29700 Amite Acres Drive
Springfield, LA

Continuing Education Institute
504-465-9174
TEACHING Banking and Investment Principles to Reduce Debt
Kenner, LA

Sno Fire& Ice Financial Services Co LLC
504-232-8276
2854 Baronne St
New Orleans, LA

Credit One Restoration LLC
225-214-3491
5841 S Sherwood Forest Blvd
Baton Rouge, LA

Adapted From: Commercial Real Estate Investing For Dummies

Most people think commercial real estate is all about apartment rentals. Even though residential properties are a big part of commercial real estate investing, other types of properties make for excellent investment opportunities.

Commercial real estate is defined as any real estate that's bigger than one house on one lot. So even if people live in the property, it's still commercial as long as it's bigger than one house. The following sections show the different types of commercial property.

Apartment buildings (also known as residential properties)

Residential properties include everything from small apartments (five or more units) to huge multi-story apartment buildings. What's great about investing in apartments is that they're easy to find, banks love to lend on them, and they're great cash-flow generators.

Offices and warehouses

Offices and warehouses are great for investing because they have triple net leases, in which the tenants pay you rent plus

All maintenance and repairs
The insurance on the property
The real estate taxes

Typical triple net leases are 5 to 20 years long with rent increases every couple of years. That can be a disadvantage as well as an advantage, and here's why: Say the lease is for 10 years. If your neighborhood experiences explosive growth over the next five years, you won't be able to capitalize on what's happening because you're locked into a 10-year lease agreement. But overall, triple net lease investments are great for investors.

Retail centers

Most investors like retail centers — shopping centers and malls — because, like office and warehouse properties, they're leased out on a long-term triple net lease basis. As an investor, your rates of return won't go down over time as the taxes and expenses go up. In fact, as rents go up over time, your returns just keep getting better and better. And as in most triple net lease agreements, rent increases are built into the agreement with the tenant.

Hotels and resorts

This asset type isn't the best place to get started, but many experienced investors find it to be a fun and profitable area. Of course, other investors have also lost their shirts, so make sure that you know what you're doing before jumping in.

One way to get started in this niche is to invest in the property and then lease it out to another company that will operate the hotel or resort. Why? Running a hotel is a business, not an investment, and running a business brings with it a whole new set of rules, regulations, and headaches.

Land development

Land development is one of the most exciting types of commercial real estate. However, it can also teach you to some quick and painful lessons if you jump in without knowing what you're doing.

By taking land that isn't yet fit for building through the approval process, you can dramatically increase its value. Commercial real estate investors call this "taking it to the map." Remember that it also makes sense to start small and work your way up with land development. Starting off small allows you to get comfortable with the land development process before going out to raise millions of dollars.

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Featured Local Company

Hebert and Hitzman Capital Management

985.613.0395
4600 Highway 22 Suite 8
Mandeville, LA

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Advertising	Family	Home Services	Real Estate Resources
Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
Career	Financial Services	Insurance	Software
Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History