Commercial real estate is known as property that is used only for business purposes or property that is used to generate cash flow for the business owner. These can include industrial real estate, office spaces, retail spaces and multifamily residential buildings for rent. In some regions, zoning is quite important for real estate because certain types of properties have to be situated within the designated zones. These properties are generally owned by investors who lease them for businesses for long periods of time.
There are different classifications for commercial buildings. If you’re looking to lease a building for your business, Facey property Melbourne can help you narrow down your choices and pick a property that will be ideal for your vision. The classifications of commercial real estate are based on age and quality. Class A is newer buildings with updated services and facilities. These can be quite expensive. Class B is slightly older buildings and class C is older buildings that require a certain amount of maintenance. These classes can help investors get a quick and clear idea of the property before going through the particulars. You can get an idea of the cost and also the degree of maintenance required through this classification.
Residential property is very different to commercial property. This is because the main purpose of a home owner is a place to live. They may rent out a part or whole of their house to generate an additional income but the key purpose remains. This is not the case for commercial property as the main purpose is to generate an income for the investor. High rise residential buildings and large apartment buildings also fall into the commercial building category. The lease length for commercial real estate is considerably longer than residential leases. These can last from five to ten years or even more. The rate for a commercial property depends on the square footage of the property while residential rates generally take the total rent paid in a year.
There are different categories of commercial real estate. One such category is office space. These are office buildings that provide workspace for businesses. Industrial spaces as the name suggests are for industrial purposes such as warehousing, manufacturing, assembling etc. Multifamily complexes are categorised as commercial real estate because they generate an income through monthly rent for the property owner. Typically, a multifamily complex will have more than five units. Retail spaces such as shopping malls and stores are also commercial property. Hotels are another example. There are also different types of hotels such as those with a full range of services, limited services and hotels that offer extended stays.
Real estate agents can be very helpful in manoeuvring you through the process of the lease. They will ensure that you are provided with favourable listings that suit your purpose and communicate with property owners and other management on your behalf. You will be given all pertinent information about the listings making it a lot easier for you to decide on a property.