Commercial property
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.[1]
Contents |
[edit] 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.
[edit] Types of commercial property
Commercial real estate is commonly divided into six categories:
| Category | Examples |
|---|---|
| Leisure | hotels, public houses[2], restaurants, cafes, sports facilities |
| Retail | retail stores, malls, shopping centres, shops |
| Office | office buildings, serviced offices[3] |
| Industrial | industrial property, office/warehouses, garages, distribution centers |
| Healthcare | medical centres, hospitals, nursing homes |
| Multifamily (apartments) | multifamily housing buildings |
Of these, only the first five are classified as being commercial buildings. Residential Income Property may also be used to mean Multifamily Apartments.
[edit] Additional commercial property information
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.[4]
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.[5]
[edit] See also
- Class A office space - Class A office space is a rating of office space.
- Commercial Information Exchange
- Commercial building
- Real estate
- International real estate
- Commercial Property News
[edit] References
- ^ Investopedia Definition
- ^ "Commercial Property Investment Agency: Types of property". http://www.commercialpropertyinvestmentagency.com/index-3.php. Retrieved 2010-07-24.
- ^ "Movehut:Commercial Property to Rent Choices". http://www.movehut.co.uk/rent/.
- ^ Florance, Andrew. "Slicing, Dicing, and Scoping the Size of the". Journal of Real Estate Management. http://www.costar.com/webimages/PressRelease/2011/Size%20of%20CRE%20Market%20Florance%20et%20al%20JREPM%20v16%20n2.pdf. Retrieved 2011-08-18.
- ^ PropertyMall http://www.propertymall.com/press/article/24545
