What is Commercial Real Estate?
That’s a really good question. We hear about real estate pretty often and we probably hear about real estate that is classified as “commercial” every now and then. If you’re looking for commercial property in Baton Rouge, then this is a must read for you.
The excerpted blog post below was written by one of our SVN friends in Pensacola, Florida. His post is broken up into a few different sections. He starts off by defining commercial real estate. After that, he delves into the various commercial property types. Examples of this would include Offce Space, Retail Space, Multifamily Properties, Land and Industrial Space. He writes a paragraph about each of those types of real estate and then goes on to talk about the types of people who are involved in commercial real estate. At the end of the post, he explains that commercial real estate professionals actually work for FREE! Now, how exciting is that!? If you’ve ever wanted to read up on the topic, this blog post is practically a one-stop-shop [minus the shopping part]. Please, take a moment to read the excerpt below, and if it intrigues you, feel free to click the link below to read the entire article. And of course, if you need any help finding commercial space in Baton Rouge, or the surrounding area, please give us a call!
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Commercial Real Estate Defined
Any property used to generate income is classified as a type of commercial real estate. The word “commercial” implies that commercial real estate has something to do with commerce and is used for making a profit. I Googled “commercial definition” and you can see what I found in the inserted image to the right. Real estate is property that includes land or buildings. So, commercial real estate is land or buildings used to generate income. This all sounds pretty self-explanatory, but in reality, there are many types of commercial real estate. Each type has its own rules and intricacies. Some of the most common types are briefly described below.
The Types of Commercial Real Estate
- Office: Any space utilized by an individual as a place of work can be considered office space. While the paradigm of what an office space may be is shifting, the traditional office property is one where all sorts of businesses occupy an area used for the day-to-day operations of that business. Attorneys, wedding planners, architects, call centers, start-up businesses and so many others use office space to do their work, meet their customers, and run their business in general. In fact, some investors will build entire office buildings, designed solely to be leased out to anyone who needs office space.
- Retail: This is quite possibly what most people envision when they hear the words, “commercial real estate.” Most people think of the traditional retail stores, which would include Walmart, the gas station around the corner, the office supply store or any other place that actually sells goods on-site. Some commercial real estate professionals include restaurants under this same category. Then again, there are others who take the position that restaurants should be in their own category, separate from the retail property type. But regardless of whether a restaurant is considered retail space or not, it is also a type of commercial real estate. That is certain!
- Multifamily: Apartments, senior housing or student housing are examples of multifamily properties. There are other types, but the three just mentioned are among the most prominent. Just as the word implies, these properties are groups of residential units, typically sharing a common structure, and built for the purpose of ….