What is Commercial Real Estate

Real Estate
Commercial real estate is a big part of your everyday life. Learn more about buying retail properties, office space, and industrial properties.
Published on
July 16, 2024
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Commercial Real Estate

Commercial real estate is a broad term that describes any piece of land or building that is used for non-residential purposes. This includes office space, industrial use, multi-family rental, retail and more. Commercial real estate can be an investment vehicle as well as a long-term investment.

Office Space

Office space is a building that is used for office work. Office space can be rented by companies, or by individuals. Office spaces are usually rented monthly, but they can also be leased for short or long terms.

Office buildings usually have a reception area with desks and phones, meeting rooms, and bathrooms. There may also be storage areas for paper documents and supplies.

Industrial Use

Industrial use is not the same as commercial use. Commercial property is used for office, retail and entertainment purposes. Industrial property is used for manufacturing, warehousing and distribution purposes. Industrial properties tend to be more expensive than commercial properties because they are in areas known for high traffic volumes, such as near airports or ports.

Multi-Family Rental

Multi-family rental is a type of real estate that has multiple tenants in a building. The most common multi-family rentals are apartments and condos, but they can also be townhouses or other types of residences. Multi-family properties may be owned by an investor (either directly or through an investment company) or they may be rented out by the owner to tenants who take care of managing the property themselves.

When it comes to commercial real estate investments, there's an important distinction between owning versus renting: when you own something, you have complete control over what happens at your property; when you rent something instead, there's more risk involved because your tenant could damage the property or stop paying rent at any time without any warning. In general terms: if you're looking for low risk investments with minimal financial outlay required up front (i.e., no mortgage), then multi-families are probably not for you!

Retail

Retail refers to businesses that sell goods and services. It's one of the most common types of retail business, and it can be found in almost every city and country in the world. Retail stores are usually open to the general public, but there are other variations on this type of business that may have restricted access.

Conclusion

Real estate is a complex investment that can have a huge impact on your financial future. To make sure you're making the right decisions, it's important for you to understand commercial real estate and what makes each type of property different from others.

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