Commercial Real Estate Dictionary

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Commercial real estate

Definitions of Commercial real estate
  • Commercial real estate is a category of real property that is primarily commercial in nature or purpose. Property types in commercial real estate include office, industrial, retail, and hospitality.
    I found a career in commercial real estate very rewarding as I continuously dealt with successful entrepreneurs and business people.


What is Commercial Real Estate? What Is Commercial Property?

Commercial real estate is defined as any real property that is used for commercial purposes or is commercial in nature. Put simply, it is any real estate that is not a residential home.

What Are The Commercial Property Types?

The conventional commercial property types include industrial, office, retail, multifamily, and hospitality. Each property type is determined by its use and the needs of its occupants.

Commercial properties do not necessarily fall clearly into one of these categories. Some properties may combine different categories into a mixed use property. An example would be a commercial building that has retail stores on the bottom floor while upper floors are a mix of apartments and offices. Some properties may fall outside these categories all together such as agricultural land.

What Businesses Are Part Of The Commercial Real Estate Industry?

Commercial real estate can also be considered as the host of industries that respond to the real estate needs of businesses, institutions, communities and governments. Many different specialized businesses must come together to produce the built environment.

Among the specialties that make up the commercial real estate industry are commercial mortgage lenders, real estate developers, appraisers, commercial property managers, and commercial real estate brokers. Each one of these specialties makes a specific contribution that results in the commercial space that is occupied by businesses, institutions, and government.

In a broad sense, commercial real estate is the industry and resulting structures that support and embody our communities.


        

Real Estate Terms

1. How much cash will be required to make your mortgage payments? Debt Service >>


2. Who can you go to to finance your construction or development project? Construction Lender >>


3. What professional can assist you in maximizing the value of your investment property? Asset Manager >>


4. How can we assess future commitment to infrastructure to support our communities and future development? Capital Improvements Projects >>


5. What measurement indicates if a property's financial performance can cover its debt? DSCR >>


6. What part of a city is the center of urban economic development? CBD >>


7. What allows property owners and professionals to estimate the market value of a commercial property? Comparable Property >>


8. What can landords do to entice prospective tenants? Concession >>


9. What critical factor do stores depend on to drive traffic? Anchor Tenant >>


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