What is commercial real estate?

Commercial real estate is properties that can be used for commercial purposes. These types of properties are used only for business purposes. Commercial real estate can be used as workspaces. Most commercial buildings are leased to tenants for an amount of time so that revenue can be generated. This is a broad term that can mean a small shopping store or a shopping mall. Both fall into the commercial real estate category. Some of the commercial real estate property includes office space, hotels and resorts, strip malls, restaurants, and healthcare facilities. This is what is commercial real estate meaning.

Difference between residential property and commercial real estate property:

Commercial properties are used to generate revenue through business and residential properties are houses where people stay. 

Commercial property can be divided into four categories those are:

1. Office space

2. Industrial use

3. Multi-family rental

4. Retail

Individual categories can be further divided into four categories:

• Class A - signifies modernized buildings. This class signifies buildings based on age, quality of infrastructure and location.

• Class B- Buildings that are old and not so competitive falls into this category. Investors always search for these buildings to invest in building restoration.

• Class C- Buildings that are more than 20 year old falls into the Class C category.

You can get benefitted if you have commercial property. If your property is located near the market then you can generate revenue easily. Also if you have a commercial property you can lease it as well.

A commercial property required proper maintenance to attract consumers. Even if your property is located in a colony you can easily generate revenue by opening up a simple grocery store. 

Documents required to lease commercial property:

• Title ownership validation

• Sanctioned Plans and Power Of Attorney (PoA)

• Appropriate Renting Agreement

• Income Tax & Mortgage verification

I hope you now have an idea about commercial real estate.

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