In the real estate industry, there are two forms of spaces that any builder/developers offer i.e. Residential Spaces & Commercial Spaces. It depends upon the buyer what he/she is willing to purchase and for what reason. In a broader sense, the residential space is held by homebuyers who look to live in purchased flats or apartments for a longer period or rent it to tenants while commercial spaces are held with buyers who look for office spaces, malls, or retail spaces.
What is Commercial Real Estate?
Commercial Real Estate or CRE is a type of real estate industry space that is exclusively designed for the business-related purpose or to offer workspaces. It is a non-residential property where income is generated by offering the space in form of malls, office spaces, or retail spaces. Commercial real estate is different from residential real estate. This real estate type includes various categories such as office space, hotels and resorts, strip malls, healthcare facilities, shopping centers, and various others.
Commercial spaces are generally leased to the tenants and used as a workspace or living space and ultimately income is generated through this. The owners of commercial real estate are required to pay additional taxes in compliance with the government’s rules and regulations.
Also Read: All You Need to Know About Property Tax and Its Calculations
Different Types of Commercial Real Estate
Commercial Real Estate is one of the fastest-growing spaces offered by real estate developers. In India, there are four types of commercial real estate mentioned below:
Office Space
Commercial Real Estate offers office spaces for setting up offices of national and multinational organizations, large and small workspaces, call centers, and many more. Further, office spaces are classified into 3 different categories/classes mentioned below:
Class A– Best Building, Well-maintained, Best Quality of Infrastructure & Prime Location
Class B– Usually Older Buildings, Less Competitive, Need Restoration
Class C– Poorly Maintained Buildings, Located in Less Populated Areas, Built over 20 years ago
Retail Space
Under this type of commercial real estate, the owners build small stores, grocery stores, outlets of national and international brands. Also, retail space includes restaurants and cafés.
Industrial Space
Several companies need large spaces for their workflow. This might include assembly lines, large workshops, and various other workshops on steel, automobile, logistics, groceries. For large spaces, Industrial real estate space comes into effect and enables them to meet the business requirements.
Multi-Family Rentals
There are some CRE spaces in which owners rent out living spaces to tenants. These buildings include apartment complexes or high-rise buildings and are considered multi-family rentals.
Miscellaneous
This type of commercial real estate includes all other non-residential properties such as hospitals, storage developments, hotels, resorts, and others.
Investors look for higher returns when they think of investing. To earn more outside of the stock market, investing in CRE is one of the safest and wise decisions to make money. Investing in CRE can turn out to be a stable source of income because it offers lucrative leasing rates and fewer overhead expenses.
