How Are Apartments Different from Other Commercial Real Estate Investments?
Why Multifamily Real Estate May Be the Smartest First Move for New CRE Investors
If you’re considering diving into commercial real estate, there’s a good chance you’ve heard that multifamily apartment buildings are a smart place to start. But what makes apartments so different from other kinds of commercial real estate—like office buildings, retail centers, or industrial warehouses?
Here’s what you need to know.
Apartments Have Residential Tenants—Not Businesses
Unlike retail or office buildings, apartments serve as homes, not workplaces. This core difference makes apartment investments feel more familiar to most people. After all, everyone has lived in a home—but not everyone has leased an office suite.
Shorter Lease Terms
Most apartment leases are 12 months or even month-to-month. This allows you to adjust rents more frequently and keep pace with the market—something you can’t always do with long-term commercial leases locked in for 5-10 years.
