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Which Is a Better Investment – Commercial or Residential?

Updated: Sep 19, 2021

Property is always a good investment. There are many reasons to invest in commercial real estate in Oklahoma, but the residential real estate also has its benefits. Various factors will determine which is the best investment for you.

Residential or Commercial Real Estate in Oklahoma?

Invest in Commercial Real Estate in Oklahoma

Risk and Reward

If you invest in commercial real estate in Oklahoma, you have the advantage of seeing a higher return on your investment. The National Council of Real Estate Investment Fiduciaries reports annual returns of over 12 percent.

Commercial real estate does have stricter zoning regulations and more significant public interaction. It also demands a higher cost of entry.


A triple net lease works to the advantage of the owner. Lessees are responsible for the expenses associated with the property, including the real estate taxes. Companies choose this lease because it allows them to make updates to the property that showcase their branding.

Additionally, leases for commercial real estate in Oklahoma last longer than residential leases will. Most businesses will sign for five to 10 years. The benefit of a long-term lease is reduced vacancies and turnover. Keeping a tenant also means that you have steady cash flow coming.


Most business owners have a vested interest in maintaining their business location, which means keeping your property clean and in good working order. While there are no guarantees, a careful vetting process adds another layer of protection.

Increase Value

The revenue that commercial property brings in will determine its value. This is different from the value of residential real estate, which varies based on comparable properties. When you have the ideal tenants, you can easily increase your property value.

Invest in Residential Real Estate in Oklahoma

Risk and Reward

Residential real estate typically has a lower cost of entry than commercial real estate does. Still, it also lacks the high returns of commercial tenants. Residential real estate also has fewer zoning regulations and fewer people entering the structure on a daily basis.


Residential real estate has a larger target market, making it easy to find renters. Everyone needs a place to live, but there are only so many business owners. The downside to having such a large market is that you might have tenants that do not care for the property as their own. A background check can help, but nothing is certain.


There will always be a need for residential housing, even in a poor economy. While it is possible to keep a home rented, the market will definitely affect the value if comparable properties go down. As the value of real estate goes down, the amount of rent you can reasonably charge could stagnate.

These are just a few things to consider when choosing how to invest your money. If you are ready to make a great return, commercial property is the way to go. If you have any questions about commercial real estate in Oklahoma, please feel free to contact us. We are ready to guide you through the entire process and help you find the ideal investment property.

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