Is commercial real estate a better investment than residential for small investors?

It depends on yield, vacancy risk, and management effort.

Commercial
- Potentially higher rental yield
- Longer leases possible
- More sensitive to location, business cycles, and tenant quality

Residential
- Broader tenant pool in many cities
- Often easier to finance and exit
- Yield may be lower after maintenance and vacancy

Underwrite with realistic vacancy, fit-out recovery, and legal costs. Location quality beats bargain pricing. If you need stable passive income with less operational drama, residential may fit; if you can underwrite tenants carefully, selective commercial can outperform.

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