Arkon Market Intelligence

Commercial vs Residential —
Which Asset Class Wins in Your Market?

The data across Moscow, Dubai, Madrid and Miami. Side by side. No opinion — just numbers.

Section 1

Asset Class Overview

Key metrics across all five asset types for each core market. Select an asset class to compare.

Metric🇦🇪 Dubai🇪🇸 Madrid🇺🇸 Miami🇷🇺 Moscow
Average gross yield8–12%5–9%6–10%7–9%
Average net yield6–9%3.5–6%4–7%5–7%
Typical lease length1 year5 years (min)1–2 years11 months
Vacancy rate8–12%5–8%4–7%6–10%
Entry price (typical)€200K–€800K€150K–€600K€300K–€1.2M€60K–€300K
Mortgage availabilityYes (50–75% LTV)Yes (60–80% LTV)Yes (70–80% LTV)Yes (60–80% LTV)
Foreign buyer accessFullFullFullRestricted
Management intensityMediumMediumMediumMedium
Liquidity (months to sell)2–4 months3–6 months3–5 months4–8 months
Capital appreciation 5yr CAGR8–15%6–10%8–14%3–7%
Total return (yield + appreciation)16–27%11–19%14–24%10–16%

Section 2

The Fundamental Differences

What separates residential from commercial investing — lease structure, yields, financing, tax, and management.

Residential
  • • Tenant pays rent only
  • • Landlord pays maintenance, insurance, taxes
  • • Short leases (1–2 years) — frequent vacancy risk
  • • Residential tenants have strong legal protections in most jurisdictions — eviction is slow and costly
Commercial (Triple Net / NNN)
  • • Tenant pays rent PLUS property taxes, insurance AND maintenance
  • • Landlord has near-zero ongoing costs
  • • Long leases (5–15 years) — income certainty
  • • Commercial tenants have weaker legal protections — eviction faster and cheaper
  • • Rent escalation clauses built into lease (typically CPI + 1–2% annually)

"In a NNN commercial lease, the tenant is effectively your property manager. You collect the cheque and do nothing else."

Section 3

Investor Profile Matching

Which asset class fits your goals? Select your profile to see the recommended strategy.

Profile 1

Passive Income Investor

Steady monthly income, minimal involvement

Profile 2

Capital Growth Investor

Maximum appreciation over 5–10 years

Profile 3

Leveraged Yield Investor

Maximum cash-on-cash return using mortgage

Profile 4

Portfolio Diversifier

Reduce correlation to equities and bonds

Profile 5

Short-Term Rental Operator

Maximum gross income, hands-on

Profile 6

HNWI / Family Office

Capital preservation + income + residency

Section 4

Commercial Deal Metrics

When evaluating a commercial property, these are the metrics that matter — beyond price per m².

Asset type

Office / Retail / Industrial / Mixed

Current tenant

Or vacant — tenant quality matters

Tenant credit rating

If available — de-risks income stream

Lease expiry date

And remaining lease term in years

Annual rent (contracted)

The actual rent being paid today

Rent review mechanism

CPI / Fixed / Open market

NOI

Net Operating Income after all costs

Cap rate

NOI ÷ Purchase price — the core metric

WAULT

Weighted Average Unexpired Lease Term

Occupancy rate

For multi-tenant buildings

Building grade

A / B / C — affects tenant quality

Energy efficiency rating

Increasingly important for institutional buyers

Triple net / gross lease

NNN = tenant pays all costs

Parking ratio

Spaces per 100m² — affects tenant demand

Year built / refurbished

Capex risk indicator

Planning use class

Determines permitted uses

Section 5

Cap Rate Benchmarks by Market

Current market cap rates across all commercial asset classes. Higher cap rate = higher yield, but also higher risk.

Asset Type🇦🇪 Dubai🇪🇸 Madrid🇺🇸 Miami🇷🇺 Moscow
Grade A Office7.5%5.5%6.5%11%
Grade B Office9%7%7.5%13%
High Street Retail8%5.5%6%10%
Shopping Centre8.5%6%6.5%12%
Industrial / Logistics9%6.5%7%14%
Hotel8%6%7%11%
Mixed Use8.5%6%6.5%11%

Context: Cap rates above 7% in a stable currency jurisdiction (Dubai, Miami) represent exceptional risk-adjusted returns. Moscow's elevated cap rates reflect the currency and geopolitical risk premium — higher yield, higher risk.

Section 6

The Commercial Advantage Summary

Why experienced investors prefer commercial — and why beginners often start with residential.

Why Experienced Investors Prefer Commercial

  • Longer leases = income certainty
  • Tenant pays operating costs (NNN structure)
  • No 3am maintenance calls
  • Rent escalation built into lease
  • Commercial tenants easier to evict
  • Institutional buyers = better exit liquidity
  • Higher yields in most markets
  • Professional tenant relationships

Why Beginners Start With Residential

  • Lower entry price
  • Higher mortgage LTV available
  • Simpler to understand
  • More exit buyers (individuals not just institutions)
  • No VAT complications in most markets
  • Emotional familiarity — everyone understands apartments

Ready to explore verified deals?

Browse residential and commercial investment opportunities across all four core markets.

Commercial real estate investment involves significant risks including vacancy, tenant default, and illiquidity. Cap rates and yields shown are market averages and individual properties will vary. Always conduct full due diligence and engage a qualified commercial real estate advisor and legal counsel before any transaction. This is market intelligence, not investment advice. Investments Medina GmbH is not a licensed investment advisor in any jurisdiction.

Commercial deals — coming soon

We're curating verified office, retail, and logistics deals across Dubai, Madrid, Miami, and Moscow. Join the waitlist and be first to access them when they go live.

No spam. One email when deals go live. Unsubscribe any time.

🏢 Office deals from €250K🏪 Retail from €180K🏭 Logistics from €400K
Arkon

Arkon Deals — Invest Smarter in Global Real Estate.
Verified deal intelligence across 4 core markets.

Company

Investments Medina GmbH
Hildesheim, Germany
[email protected]

Market data is sourced from local listing platforms, public price registries, and proprietary deal sourcing. Primary sources include CIAN and Avito (Russia), Bayut and Property Finder (UAE), Idealista and Fotocasa (Spain), and Zillow and Realtor.com (United States). Watchlist markets rely on aggregated third-party estimates and are indicative only.

© 2026 Arkon Deals. All rights reserved.

Arkon provides real estate market intelligence for informational purposes only. Nothing on this platform constitutes investment advice, a solicitation, or an offer to buy or sell any asset. Real estate investments involve risk, including potential loss of capital. Always conduct independent due diligence and consult a qualified financial or legal advisor before making any investment decision. Investments Medina GmbH is not a licensed investment advisor in any jurisdiction.