Welcome to the world of commercial real estate (CRE), a dynamic and potentially rewarding investment asset class. Whether you're a new to investing in the space or a new business looking to buy premises, understanding what is and isn't commercial property is fundamental.
Commercial property, often referred to as commercial real estate, is a broad term encompassing any property used for business purposes. Unlike residential real estate, which is designed for living, commercial properties are meant for business activities. There are many types of commercial property so let's break down the main types of commercial properties you might encounter:
Office
Retail
Industrial
Medical
1. Office
Office properties used for business purposes and range from huge skyscrapers in city centers (the focus of most media when discussing commercial real estate) to small buildings in suburban areas. They're used for business offices, and various professional services.
2. Retail
Retail properties are used to sell or market goods and services to consumers. They include single shops through to large shopping centres or malls. This sector includes everything from small shops to large shopping centers and standalone restaurants. Retail properties are all about location, visibility, and foot traffic.
3. Industrial
Industrial properties can be used for a range of purposes such as manufacturing, storage, and logistics purposes, warehouses, manufacturing buildings, and distribution centers. They're typically located outside of urban areas, focusing on functionality and ease of transportation.
4. Medical
Medical properties are used for healthcare and medical purposes. This sector of the real estate market is very specialised and caters specifically to the needs of the healthcare industry. These uses include hospitals, clinics, medical offices, laboratories, diagnostic centers, and specialised facilities like outpatient surgery centers or urgent care clinics. It can also encompass long-term care facilities like nursing homes and assisted living communities. These properties are often strategically located for optimal accessibility to patients. Proximity to major hospitals, accessibility via public transportation, and visibility in the community are important factors
Why Invest in Commercial Property?
Investing in commercial real estate can offer several advantages and we'll discuss these in our next post.
This blog post is for informational purposes only and should not be considered financial advice. Always consult with a professional before making investment decisions.
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