Infrastructure follows a cycle of hot and lean periods. Those who keenly tail opportunities are sure to benefit when the market is ripe for cashing in. As of now, commercial real estate is where one should put one’s money.
The KCT Group with diversified interests, It would now move aggressively into premium commercial property dealings where the money lies. Properties able to raise profit from capital gains or rental income constitute the chunk of commercial real estate.
What Comprises Commercial Real Estate?
Let us see what constitutes this lucrative section of the industry that has suddenly become ‘hot property’ for the KCT Group, which already has tasted success in the field of Coal Logistics.
Office Buildings
One finds office buildings in both urban and suburban areas. In urban areas skyscrapers, high rise buildings, vast properties spread across several million square feet provide commercial space for all nature of businesses. Suburban areas provide similar type of infrastructure but considerably smaller.
Industrial Structures
Industries operate close to urban limits but just outside, with their operations run within industrial structures designed to serve their purpose like coal sheds for Coal Logistics. Close to national or state highways, for a host of conveniences, they could be grouped in clusters in industrial parks.
Retail Housing
If a business house has successfully involved itself in investment as diverse but with rich returns as Aquaculture, retail housing is no challenge at all. Retail housing broadly constitutes single-use, multi-tenanted and standalone buildings where multi-tenanted could have a lead tenant to drive traffic towards the property.
But going further, even a regional mall, a shopping centre or a community gathering place come under retail housing where metrics like size, concept type, no. of tenants, trade area take precedence.
Multi-Family Establishments
These are beyond the single-family and constitute all types of residential and commercial real estate constructions such as apartments, townships or condos.
Special purpose
These fall under commercial real estate but have a theme or purpose for which they exist like amusement parks, bowling alleys, churches etc. One wonders whether breeding aquariums for Aquaculture would fit in here.
Why Commercial Real Estate?
The very purpose of commercial real estate is to benefit from property to be used for a business purpose. The property, let’s say could be an office, a warehouse or a retail shop. From this property, one could get superior returns if the business runs properly. Even otherwise it is an investment in an asset that would fetch something in return.
Another concept that is gaining for pickers is ‘fractional ownership’. That means investors pool in their finances to buy a property that they would jointly own. The sole purpose of such investment is to get superior returns over time. The bottom line – “Strike while the sector is hot”
TheEntrepreneur 