Commercial real estate (CRE) refers to properties exclusively for business activities, like office buildings, retail centers, industrial warehouses, and...
Commercial real estate includes any property used for business purposes, such as office buildings, retail spaces, industrial warehouses, and hotels, generating income rather than serving as a primary residence.
Key types include Office (e.g., corporate headquarters), Retail (e.g., shopping malls, storefronts), Industrial (e.g., factories, warehouses), Multifamily (apartment complexes), and Special Purpose (e.g., hotels, medical facilities).
CRE typically involves longer lease terms, higher financial stakes, more complex transactions, and is valued based on income potential, while residential is primarily for personal living and valued on comparable sales.
Key factors include location, economic conditions, interest rates, population growth, employment rates, supply and demand dynamics, property income potential, and local market trends.
Investors range from individual high-net-worth individuals and private equity firms to large institutional investors, real estate investment trusts (REITs), and pension funds seeking stable income and capital appreciation.