What Is Commercial Property?
Real estate property can either be commercial or residential. Commercial Property as distinguishable from residential property refers to property (land or buildings) reserved exclusively for business engagements for the generation of profit derivable from rental income.
On the other hand, residential property is designated for non-commercial purposes. The distinction is necessary as it helps in determining the tax payable and financing of the property.
Commercial property includes shopping malls, high-rise buildings, grocery stalls, medical centers, office buildings, amongst others.
Investing in a commercial property is generally perceived to yield high returns on investment. Depending on the financial strategy to be adopted by an investor, investment in commercial property could be direct or indirect. A direct investor has the capital to fund the property while directly owning it. An indirect investor could invest in commercial property through an investment vehicle.