What is Commercial Real Estate?
At some point in your life, you have visited a commercial real estate property. Whether it be a trip to the grocery store, your local coffee shop, or even your place of work. Commercial real estate is a vital part of the American lifestyle, that is often overlooked by consumers. A lot of people put a lot of time and effort into developing, buying, and leasing these properties for the consumers that shop at them.
Commercial real estate includes all non-residential real estate used exclusively for business, commerce, and industry.
Some examples include:
- retail stores
- office buildings
- medical offices
- manufacturing facilities
- apartment buildings
Commercial property is typically owned by a person or company called an investor, and leased out by a landlord for business purposes to tenants that conduct their operations there.
A lease is defined–as a contract between two parties where one party rents a property or building to another party for a specified amount of time and a predetermined amount of money. On a commercial building, a lease tends to average anywhere from three to ten years.
Commercial real estate agents have a considerably different job than those in residential real estate. According to an Investopedia article, “selling or leasing commercial property takes a significantly longer time, and commercial real estate agents must provide substantial analytical data and financial information”. There is a good deal more to consider with commercial real estate.
Another aspect in commercial real estate is development. A developer buys land, provides finances, builds projects, and essentially creates and organizes entire buildings, sometimes even neighborhoods, from start to finish. Developers are the entrepreneurs of real estate. They assume the greatest risk and reap the biggest reward.
Lee & Associates Orange provides a variety of services to those in the commercial real estate industry like brokerage, corporate solutions, valuation, and consulting. If you are interested in looking for a commercial property, visit our properties page, where we have a wide variety of commercial real estate available to address your needs.
by Staff Writer, Lee & Associates Orange