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Commercial Real Estate
Commercial Real Estate
Are you searching for that great real estate investment but you still have not found what you are looking for? If that is the case, maybe you should expand your real estate search to include commercial real estate.
But what is commercial real estate?
Commercial real estate can refer to a number of things. Generally though, the real estate industry is divided between two types of property – residential property and commercial property. The residential real estate market covers residential property like homes, townhouses, apartments, lofts, condominiums, and other types of property that are designated for the owner to live in. The primary investment value of a residential property is its appreciation over time.
Compare this to commercial real estate that are essentially properties that are designated to create a profit. This covers housing that the owner intends to rent out for income or for properties that are designed to offer a service for money. For example, commercial properties can be an industrial property, a mall, a hotel, a retail store, an office building, and even a medical center. In some instances, a residential property can be considered a commercial property. This is due to different state real estate regulations in which a certain size is automatically considered a commercial property for borrowing and tax purposes.
How is commercial real estate a good real estate investment?
Well commercial real estate is your classic big risk big reward money making scenario. While home ownership offers a slow and steady fiscal gain through natural property appreciation, commercial real estate offers this plus more. Whether you are starting your own business or simply renting out the property, you have the benefit of accumulating this extra revenue in addition to the natural market value of the property.
That sounds great but are there any drawbacks?
Of course commercial real estate is a gamble. That is because unlike owning residential real estate, Commercial Real Estate demands that you are not only obliged to you. If you are renting your commercial property, than you are responsible for the demands of your tenants. If you want to use your property for a business or service, than you have to use your own money to start and grow your business. However, with a bit of business savvy and some careful research, you will be able to reap the rewards of your investment.
OK, I’m interested but where can I find commercial real estate for sale?
There are a number of options for you to find commercial real estate. Many Real Estate Companies specialize in Commercial Real Estate and have realtors that are there to help you. Additionally, more and more Commercial Real Estate for sale by owner are popping up in your area and on Real Estate Blogs. Look around and you will quickly see how big the Commercial Real Estate market is.