What is a commercial property??
The term commercial property refers to buildings or land
intended to generate a profit, either from capital gain or rental income. They
are also called as investment or income property. Commercial property normally
includes office buildings, industrial property, medical centers, hotels, malls,
retail stores, farm land, multifamily housing buildings, warehouses, and
garages. In some states, residential property that contain more than a certain
number of units qualifies as commercial property for borrowing and tax
purposes.
Commercial property is commonly divided into six categories:
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Category
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Examples
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Leisure hotels
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public houses,restaurants,
cafes, sports facilities
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Retail
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retail stores,
shopping malls, shops
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Office
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office buildings,
serviced offices
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Industrial
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industrial property,
office/warehouses, garages, distribution centers
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Healthcare
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medical centres, hospitals,
nursing homes
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Multifamily
(apartments)
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multifamily housing
buildings
|
,
Buying a commercial property is
a complex undertaking that is difficult even for experts to maximize their
investment value. It's also a venture risk, as buyers, sellers, agents, and
renters alike can suffer the consequences of a dip or spike in demand. At the
same time, for a business organisation, on the otherhand the potential rewards
can be substantial.
As a small business owner, you're most likely
not an expert. That is why it's important to surround yourself with the right
team of experts. They can help you to determine the right time to buy or sell,
the right locations to consider, and the nuts and bolts of closing the deal.
Here are some of the experts you may consider contacting:
- Accountant. An accountant
can help you figure out what your business can afford and also analyze the
tax and operating budget benefits.
- Lawyer. A lawyer can
help you complete the transaction in a legal way by negotiating with the
seller and lender on your behalf.
- Commercial
broker.
A real estate broker can help you identify the potential properties and
what you can afford.
- Mortgage
broker.
A lender or mortgage broker will help you sort out through financing
options, from bank loans to those guaranteed by the U.S. Small Business
Administration, that are used to finance primarily real estate or equipment.
