Commercial Real Estate

974 Words4 Pages
Commercial real estate is any property other than a single family home or a residential lot in a neighborhood. The commercial real estate market is handled very similarly industrial and residential real estate markets. The commercial real estate market goes through ups and downs just like any other investment market however investments into commercial real estate can be a very wise decision.

Commercial real estate is similar to industrial and residential real estate in that when you buy it you are buying a building or land. What separates these three types of real estates is how they are zoned and what they are used for. Since these three real estates are so similar the question can be asked, “What exactly is commercial real estate?” In a nut-shell almost any kind of real estate except single-family homes and lots can be referred to as commercial real estate. And even then a single family home could, in a few circumstances, be "commercial real estate" if you buy the home with the intent of renting it out and generating income or if you own the home and develop it into an income-generating property. With this in mind retail properties, office buildings, shopping centers, hotels, apartments, vacant land, and warehouses are all considered commercial real estate. Since all of these buildings are examples off commercial real estate many people look to buy and invest in them.

Commercial real estate can be purchased by anyone. Most often it is purchased by businesses or business owners. However it is not uncommon for people to invest in commercial real estate through “REITs” or real estate investment trusts. A real estate investment trust is a real estate company that offers common shares to the public. Thus making it similar to any ot...

... middle of paper ...


Work Cited

Bull, Michael. "When Is the Best Time to Buy Commercial Real Estate." Web. 1 May 2011. .

Harper, David. "What Are REITs?" - Your Source For Investing Education. Web. 01 May 2011. .

MacGyverKnows. "How to Invest in Commercial Real Estate |" EHow | How to Videos, Articles & More - Trusted Advice for the Curious Life | Web. 01 May 2011. .

Staff | Document.write('Jul, By Inc. "How to Purchase Commercial Real Estate." Small Business and Small Business Information for the Entrepreneur. 08 July 2010. Web. 01 May 2011. .

More about Commercial Real Estate

Open Document