Commercial property
Encyclopedia
The term commercial property (also called investment or income property) refers to buildings or land
intended to generate a profit
, either from capital gain
or rental
income.
Commercial real estate is commonly divided into four categories:
Of these, only the first three are classified as being commercial building
s.
Residential Income Property may also be used to mean Multifamily Apartments.
The total value of commercial property in the United States was approximately $11 trillion in 2009, as measured by the CoStar Group
and published in the Journal of Real Estate Management.
According to Real Capital Analytics, a New York real estate research firm, more than $160 billion of commercial properties in the U.S. are now in default, foreclosure or bankruptcy. In Europe, approximately half of the €960 billion of debt backed by European commercial real estate is expected to require refinancing in the next three years, according to PropertyMall, a UK based commercial property news provider.
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
intended to generate a profit
Profit (economics)
In economics, the term profit has two related but distinct meanings. Normal profit represents the total opportunity costs of a venture to an entrepreneur or investor, whilst economic profit In economics, the term profit has two related but distinct meanings. Normal profit represents the total...
, either from capital gain
Capital gain
A capital gain is a profit that results from investments into a capital asset, such as stocks, bonds or real estate, which exceeds the purchase price. It is the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the investor...
or rental
Renting
Renting is an agreement where a payment is made for the temporary use of a good, service or property owned by another. A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership from landowners...
income.
Definition
Commercial property includes office buildings, industrial property, medical centers, hotels, malls, retail stores, shopping centers, farm land, multifamily housing buildings, warehouses, and garages. In many states, residential property containing more than a certain number of units qualifies as commercial property for borrowing and tax purposes.Commercial real estate is commonly divided into four categories:
| Category | Examples | ||
|---|---|---|---|
| Retail | medical centers, hotels, malls, retail stores, shopping centers, public houses | ||
| Office | >- | Industrial | industrial property, office/warehouses, garages, distribution centers |
| Multifamily (apartments) | multifamily housing buildings |
Of these, only the first three are classified as being commercial building
Commercial building
A commercial building is a building that is used for commercial use. Types can include office buildings, warehouses, or retail . In urban locations, a commercial building often combines functions, such as an office on levels 2-10, with retail on floor 1...
s.
Residential Income Property may also be used to mean Multifamily Apartments.
The total value of commercial property in the United States was approximately $11 trillion in 2009, as measured by the CoStar Group
CoStar Group
CoStar Group, Inc. is one of the largest providers of information/marketing services to commercial real estate professionals in the United States as well as the United Kingdom. It was founded in 1987 by Andrew C. Florance. CoStar's suite of services offers customers access via the Internet to a...
and published in the Journal of Real Estate Management.
According to Real Capital Analytics, a New York real estate research firm, more than $160 billion of commercial properties in the U.S. are now in default, foreclosure or bankruptcy. In Europe, approximately half of the €960 billion of debt backed by European commercial real estate is expected to require refinancing in the next three years, according to PropertyMall, a UK based commercial property news provider.
See also
- Class A office space - Class A office space is a rating of office space.
- Commercial Information ExchangeCommercial Information ExchangeA Commercial Information Exchange is an Internet-based commercial property listing service that is operated by a local association to serve the local market. A CIE is the commercial real estate equivalent of the residential Multiple Listing Service...
- Commercial buildingCommercial buildingA commercial building is a building that is used for commercial use. Types can include office buildings, warehouses, or retail . In urban locations, a commercial building often combines functions, such as an office on levels 2-10, with retail on floor 1...
- Real estateReal estateIn general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
- International real estateInternational real estateThe term international real estate describes a relatively new phenomenon, beginning in the 1980s and keeping pace with globalization. The term encompasses real property development, sales and leasing transactions across national borders...
- Commercial Property NewsPropertyMallProperty Mall is one of the leading online news and property search service which covers the UK and European commercial property market.It is one of the main providers of news on commercial property, and is the only edited provider of news on commercial property whose content is free.The commercial...