Real Estate 101: Commercial Real Estate Investment Properties Real estate are categorized into residential, industrial and commercial. Residential real estate refers to residential houses, condominiums or apartments, whereas industrial real estate refers to factories, laboratories or warehouses used in manufacturing goods. Commercial real estate pertains to a property solely intended for business purposes, and it is being leased out for work space and not for a living or residential space. Some of the examples of commercial estate properties are office space, restaurants, convenience stores, hotels, strip malls and shopping centers. Typically, the investor owns the building of the commercial real estate, allowing it to be leased and then gain revenue from collecting a rental fee from each retailer who operates the business. Commercial real estate properties’ lease rate is annually paid and the amount is based on square foot. The leasing terms of commercial real estate properties ranges from one to ten years, and with office or retail space, the average is normally five to ten years. Tenants who occupy larger spaces have generally loner term of leases compared to those who occupy smaller spaces who have shorter term leases. The four types of commercial property leases are single net lease, double-net lease, triple-net lease and gross lease, wherein both tenants and landlord have responsibilities in terms of paying property taxes, insurance and maintenance. Commercial real estate are divided into class A for the best buildings in terms of location, age, quality and aesthetics, class B for older and not as good as class A , and class C which are the oldest, usually over twenty years of age found in less attractive areas, needing extra maintenance. Those who are newbies in business can financially benefit if they own a work space rather than lease it, and anyone can invest in a commercial real estate property with the proper knowledge about its financial, legal and regulatory aspects, or who can employ people who have these qualities to manage your investment. If you want to invest directly, commercial real estate firms have a wide range of listings, and these can be found in websites. Indirect commercial real estate investments can also be done with real estate investment trusts similar to mutual fund, stocks or bonds.
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Rental fees are basically the money that an investor of a commercial real estate can get for the return of investment. A real estate developer can also break down the spaces into smaller units rather than sell it as a whole in order to generate higher returns. If you are looking for a commercial real estate property, we are here to assist you get the best for you. Feel free to contact us anytime if you want a property in Melbourne Fl, so we can help you scout the best commercial real estate property just right for you.A Quick History of Homes

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