A space that allows companies to carry out day-to-day operations and serve customers or
clients. As such, a commercial property does not strictly need to be a store or restaurant;
it can also be a space in which income is being generated by providing services to people,
such as a law office or a doctor’s office. Schools do not qualify as being commercial real
estate; however, places of worship and lodging entities such as hotels, may be qualified
as commercial properties.
Unlike residential rental properties, in which a tenant pays a set monthly
fee for the entire apartment (and, that is how the lease agreement is spelled out),
commercial property leases are generally drawn up in such a way that the occupant is
paying a certain amount per square foot of space.
Within the scope of commercial properties, there are generally six different types:
Office, Retail, Industrial, Multi-family, Land, A miscellaneous catch-all category that
essentially covers everything else.