What Is Commercial Real Estate (CRE)?

Commercial real estate (CRE) is property that is used exclusively for business-related purposes or to provide a workspace rather than as a living space, which would instead constitute residential real estate. Most often, commercial real estate is leased to tenants to conduct income-generating activities. This broad category of real estate can include everything from a single storefront to a huge shopping center.

The Basics of Commercial Real Estate

Commercial real estate and residential real estate comprise the two primary categories of real estate property. Residential properties include structures reserved for human habitation and not for commercial or industrial use. As its name implies, commercial real estate is used in commerce, and multi-unit rental properties that serve as residences for tenants are classified as commercial activity for the landlord.

Commercial real estate is typically categorized into four classes, depending on function:

  1. Office space
  2. Industrial use
  3. Multi-family rental
  4. Retail

Individual categories may also be further classified. Office space, for example, is often characterized as class A, class B, or class C.

  • Class A represents the best buildings in terms of aesthetics, age, quality of infrastructure, and location.
  • Class B buildings are usually older and not as competitive—price-wise—as class A buildings. Investors often target these buildings for restoration.
  • Class C buildings are the oldest, usually over 20 years of age, located in less attractive areas, and in need of maintenance.

Commercial Leases

Some businesses own the buildings they occupy. However, the more typical case is that the commercial property is leased. Usually, an investor or group of investors owns the building and collects rent from each business that operates there. Commercial lease rates—the price to occupy a space over a stated period—are customarily quoted in annual rental dollars per square foot. Conversely, residential real estate rates quote as an annual sum or a monthly rent.

There are four primary types of commercial property leases, each requiring different levels of responsibility from the landlord and the tenant.

  • A single-net lease makes the tenant responsible for paying property taxes.
  • A double-net (NN) lease makes the tenant responsible for paying property taxes and insurance.
  • A triple-net (NNN) lease makes the tenant responsible for paying property taxes, insurance, and maintenance.
  • Under a gross lease, the tenant pays only rent, and the landlord pays for the building’s property taxes, insurance, and maintenance.

commercial real estate in Hervey Bay

Century 21 Commercial Hervey Bay has long been recognised as Hervey Bay’s leading commercial real estate office, respected for our professionalism, integrity and honesty.

Winners of the REIQ Commercial Agency of the Year Award for 2014 and Property Business of the Year in the Fraser Coast Business Awards 2013, evidences our ability and excellent reputation within the commercial real estate in Hervey Bay. We are a specialist office with our main area of expertise in real estate being the sales, leasing and property management of commercial and industrial properties. Our knowledge in these areas is extensive and because we specialise, we can offer a higher degree of service and advice to our clients and customers. We provide clear, expert advice to help our clients navigate through the commercial sales and leasing process, and being locals ourselves, we are able to constantly remain up-to-date with the commercial market trends and the business community.

We also offer a complete commercial property management service and we currently manage a diverse portfolio of retail, office and industrial properties from small businesses to large corporations.

We have the largest commercial rent roll in Hervey Bay and we pride ourselves on our experience and personal service that takes the hassle out of managing your property and ensures your property is protected and achieving its full potential.

Commercial Real Estate (CRE)

What Is Commercial Real Estate (CRE)?

Commercial real estate (CRE) is property that is used exclusively for business-related purposes or to provide a workspace rather than as a living space, which would instead constitute residential real estate. Most often, commercial real estate is leased to tenants to conduct income-generating activities. This broad category of real estate can include everything from a single storefront to a huge shopping center.

The Basics of Commercial Real Estate

Commercial real estate and residential real estate comprise the two primary categories of real estate property. Residential properties include structures reserved for human habitation and not for commercial or industrial use. As its name implies, commercial real estate is used in commerce, and multi-unit rental properties that serve as residences for tenants are classified as commercial activity for the landlord.

Commercial real estate is typically categorized into four classes, depending on function:

  1. Office space
  2. Industrial use
  3. Multi-family rental
  4. Retail

Individual categories may also be further classified. Office space, for example, is often characterized as class A, class B, or class C.

  • Class A represents the best buildings in terms of aesthetics, age, quality of infrastructure, and location.
  • Class B buildings are usually older and not as competitive—price-wise—as class A buildings. Investors often target these buildings for restoration.
  • Class C buildings are the oldest, usually over 20 years of age, located in less attractive areas, and in need of maintenance.

Commercial Leases

Some businesses own the buildings they occupy. However, the more typical case is that the commercial property is leased. Usually, an investor or group of investors owns the building and collects rent from each business that operates there. Commercial lease rates—the price to occupy a space over a stated period—are customarily quoted in annual rental dollars per square foot. Conversely, residential real estate rates quote as an annual sum or a monthly rent.

There are four primary types of commercial property leases, each requiring different levels of responsibility from the landlord and the tenant.

  • A single-net lease makes the tenant responsible for paying property taxes.
  • A double-net (NN) lease makes the tenant responsible for paying property taxes and insurance.
  • A triple-net (NNN) lease makes the tenant responsible for paying property taxes, insurance, and maintenance.
  • Under a gross lease, the tenant pays only rent, and the landlord pays for the building’s property taxes, insurance, and maintenance.

commercial real estate in Hervey Bay

Century 21 Commercial Hervey Bay has long been recognised as Hervey Bay’s leading commercial real estate office, respected for our professionalism, integrity and honesty.

Winners of the REIQ Commercial Agency of the Year Award for 2014 and Property Business of the Year in the Fraser Coast Business Awards 2013, evidences our ability and excellent reputation within the commercial real estate in Hervey Bay. We are a specialist office with our main area of expertise in real estate being the sales, leasing and property management of commercial and industrial properties. Our knowledge in these areas is extensive and because we specialise, we can offer a higher degree of service and advice to our clients and customers. We provide clear, expert advice to help our clients navigate through the commercial sales and leasing process, and being locals ourselves, we are able to constantly remain up-to-date with the commercial market trends and the business community.

We also offer a complete commercial property management service and we currently manage a diverse portfolio of retail, office and industrial properties from small businesses to large corporations.

We have the largest commercial rent roll in Hervey Bay and we pride ourselves on our experience and personal service that takes the hassle out of managing your property and ensures your property is protected and achieving its full potential.

 

admin

By admin