Investment Property

An investment property is a real estate asset purchased primarily to create rental income streams. The owner holds the property as a financial asset, leasing it to tenants rather than using it for personal residence or running their own business operations.

In commercial real estate, investment properties include office, retail and industrial spaces with tenants under lease agreements. Returns are derived from rental payments, potential appreciation, tax benefits, and balanced against vacancy risks, maintenance costs and financing expenses. Portfolio managers evaluate such assets using yield metrics, capitalization rates and cash flow projections.