What is Commercial Real Estate?
Posted on May 23, 2008 - Filed Under Real Estate |
Commercial real estate is defined as a property that is leased or owned and includes such things as retail space, industrial facilities and office buildings, though the property can be related to any type of business. Unlike high end residential real estate or other residential real estate, the ownership or leasing of such places requires substantial capital and is not dealt with by the average real estate agent or realtor due to the nature of negotiations, contracts and buildings or land involved.
The tenure of commercial real estate/ownership includes occupancy, tenancies, industrial cooperatives, office space, retail/industrial/general business buildings and property usage. Sometimes this includes large portions of land and the potential for the installation of equipment/facilities within that property.
Generally speaking commercial property may be related to surrounding properties in the nature of industrialization and land usage. Factories and plants tend to be found in similar areas, whereas smaller businesses and large less polluting firms may be found on business parks on the outskirts of cities or towns. Retail businesses tend to be located in and around towns and cities, primarily on high streets, or close to good access routes and parking amenities.
In Europe and North America, commercial real estate is governed by strict local and national government rules. Other examples can include apartment buildings, gas stations and oil facilities, department or store buildings, multi-unit office buildings, skyscrapers and multi-level parking arcades. Property use will be based on the use of the property such as geotechnical infrastructure, foundations, substructures, load bearing abilities, strength of construction materials, architecture, plumbing, wiring, safety equipment and routes, and many more other critical technical aspects than the average home.
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