Real estate that includes income-producing property, such as office buildings, restaurants, shopping centers, hotels, industrial parks, warehouses, and factories. Commercial property usually must be zoned for business purposes. It is possible to invest in commercial property directly, or through Real Estate Investment Trusts or Real Estate Limited Partnerships. Investors receive income from rents and capital appreciation if the property is sold at a profit. Investing in commercial property also entails large risks, such as nonpayment of rent by tenants or a decline in property values because of overbuilding or low demand.
Commercial property
| Financial & Investment Dictionary: Commercial Property |
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| Real Estate Dictionary: Commercial Property |
Property designed for use by retail, wholesale, office, hotel, or service users.
Example: An investor is interested in purchasing commercial property for investment. A Broker might show the investor shopping centers, office buildings, hotels and motels, resorts or restaurants.
| Wikipedia: Commercial property |
The term commercial property (also called investment or income property) refers to buildings or land intended to generate a profit, either from capital gain or rental income.[1]
Contents |
Definition
Commercial property includes office buildings, industrial property, medical centers, hotels, malls, retail stores, shopping centers, farm land, multifamily housing buildings, warehouses, garages, and industrial properties. In many states, residential property containing more than a certain number of units qualifies as commercial property for borrowing and tax purposes.
Commercial real estate is commonly divided into four categories:
| Category | Examples |
|---|---|
| Retail | medical centers, hotels, malls, retail stores, shopping centers |
| Office | office buildings |
| Industrial | industrial property, farm land, warehouses, garages, industrial properties |
| Multifamily (apartments) | multifamily housing buildings |
Of these, only the first three are classified as being commercial buildings.
See also
- Class A office space - Class A office space is a rating of office space.
- Commercial Information Exchange
- Commercial building
- Real estate
- International real estate
References
External links
This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)
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 | Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved. Read more |
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| Real Estate Dictionary. Dictionary of Real Estate Terms. Copyright © 2004 by Barron's Educational Series, Inc. All rights reserved. Read more |
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| Wikipedia. This article is licensed under the Creative Commons Attribution/Share-Alike License. It uses material from the Wikipedia article "Commercial property". Read more |
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