Commercial real estate is defined as real estate that is utilized for a business or use other than a domestic residency.
Commercial Real Estate Clients
When it comes to commercial real estate, there are two kinds of customers or clients; “users” and “investors”. Each has a different reason as to why they are purchasing any given property. Sometimes the reasoning can overlap and you’ll find yourself working hand in hand with a “user-investor” client.
The “user” client is defined as someone who intends to operate their business from the commercial real estate property that they intend to rent or purchase. “Investor” clients are profit driven and are primarily concerned with their monetary return on their commercial real estate. The “user-investor” client is a combination of the above; they intend to operate their business out of the commercial real estate property, but also are profit driven in their investment as well.
Types of Commercial Real Estate
Types of commercial property usually fall into four different categories; office, industrial, retail and apartment. Obviously there are many other types of commercial properties out there for sale, but we’ll utilize these three groups for our basic overview.
The “office” category typically consists of the following:
- High rise or low rise
- Professional
- Medical or Dental
- Office Condo
The “industrial” category typically consists of the following:
- Warehouse
- Distribution Center
- Factory
- Manufacturing Plants
- Research & Development Facilities
The “retail” category typically consists of the following:
- Free Standing Store
- Strip Centers
- Shopping Center and Mall
- Outlet Center
The “apartment” category needs no further explanation as it consists of apartment buildings and/or complexes.
Other examples of commercial real estate can include schools, churches, assisted living facilities and/or nursing homes. Land can also be considered commercial real estate. The land can be classified as either a residential subdivision or depending on the future use, included in one of the aforementioned categories we have talked about.
Commercial real estate has enormous potential for money making opportunities. Consider the different types of buildings and offices you pass as you make your way to work each day! Each of those commercial real estate properties were once bought, sold and/or leased. Some of these commercial real estate properties can include the following: gas stations, drug stores, fast food restaurants, banks, parking garages, storage centers and marinas. The majority of today’s real estate firms have a commercial real estate specialist who can help you find properties that suit your needs. In order to assist your realtor, it’s best to do your research up front, know what type of commercial real estate property you are looking for; an office building, a small storefront, etc. Also know what section of your town you would like to be in and most importantly how much you want to invest in the commercial property itself.
Commercial real estate is all around us, the opportunities in this area are never ending if you have the time, money and energy to commit to the process. Whether you consider yourself a “user”, an “investor” or a combination of the two, commercial real estate can be an exciting and rewarding undertaking. Commercial real estate offers clients and investors both the chance to succeed in their endeavors from a business and financial standpoint.
