Commercial Real-Estate Property

A Commercial Real-Estate Property is a real-estate property that is utilized for business activities and purposes, designed to generate profit through capital gain or rental income.

• Context:
  • It can (typically) include properties such as office buildings, retail centers, industrial warehouses, and commercial lands used for business operations like product manufacturing or as parking lots.
  • It can (often) be subject to specific zoning laws that regulate the types of businesses allowed to operate within certain areas.
  • It can provide investment opportunities through direct purchase, real estate investment trusts (REITs), or real estate funds.
  • It can encompass a diverse range of property types including mixed-use developments that combine residential, commercial, and entertainment options.
  • It can be defined by its ability to be leased or purchased with the intention of conducting business, which distinguishes it from residential properties.
  • It can offer a stable operating environment for businesses, potentially generating income and attracting customers, with certain types like industrial properties offering high returns.
  • It can (often) be leased (with a commercial lease).
  • ...
• Example(s):
  • An Office Building: E.g., used by businesses like a law firm.
  • A Retail Property: Locations for the sale of goods and services to consumers.
  • An Industrial Property: For manufacturing, production, distribution, and storage.
  • Commercial Land: Used as a base for operations like a parking lot.
  • Mixed-Use Development: Integrates multiple uses within a single property.
  • ...
• Counter-Example(s):
  • A Residential House: Used solely for living purposes.
  • Agricultural Land: Primarily for farming or ranching, not commercial operations.
  • A Personal Home-based Office: While used for business, it's primarily residential.
• See: Commercial Real Estate Lease, Real Estate Industry, Renting, Office Space, Commercial Lease, Real Estate Investment, Property Management, Urban Development.

References

2023

• https://www.lawdepot.com/contracts/commercial-lease-agreement/
  • QUOTE: What properties are commercial?
  • Generally, commercial real property includes any non-residential real estate, including entire buildings as well as individual units within buildings. The following examples are considered commercial property:
    • Office spaces, including individual office suites or entire office buildings
    • Industrial buildings, such as factories and workshops
    • Retail stores and shops
    • Restaurants, cafes, and commercial kitchens
    • Warehouses and other storage spaces

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