What Is Considered Commercial Real Estate?
what is considered commercial real estate?
Commercial real estate typically refers to properties that are primarily used for business purposes rather than residential purposes. This can include a variety of property types such as:
Office buildings: These are buildings primarily used for conducting business, housing offices for various companies and organizations.
Retail properties: These include shopping centers, malls, and individual storefronts where businesses sell goods and services directly to consumers.
Industrial properties: This category includes warehouses, manufacturing facilities, distribution centers, and industrial parks where goods are produced, stored, or distributed.
Multifamily properties: While residential in nature, multifamily properties with more than four units are often considered commercial real estate due to their income-producing nature.
Hospitality properties: Hotels, motels, resorts, and other lodging establishments fall under commercial real estate as they provide accommodations and services to travelers.
Healthcare properties: This category includes hospitals, medical offices, clinics, and other facilities related to healthcare services.
Special purpose properties: These are properties designed for specific uses such as educational facilities, religious institutions, entertainment venues, or sports stadiums.
Commercial real estate is typically leased or rented out to businesses for income generation and investment purposes. It can be bought, sold, leased, or developed for various business needs.