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What does a Commercial Real Estate Do ?

Commercial real estate is some real estate which is used for commercial purpose. Some examples of commercial real estate are shopping mall, office building and other industrial park. Consult SVNGLL https://svngll.com/about/ to know more.

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What does a Commercial Real Estate Do ?

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  1. What does a commercial real estate do? Commercial real estate is some real estate which is used for commercial purpose. Some examples of commercial real estate are shopping mall, office building and other industrial park. Sometimes commercial real estate provides venues to operate any companies operation and cater to customer conveniently. Sometimes commercial real estate profitability is more than the core business. As a example McDonalds which is the best fast food company in world actually derives its more profit from its commercial real estate property assets. Breaking down commercial real estate There are basically three types of real estate like residential and industrial and commercial. Residential means let out property for residential purpose, industrial means let out property for manufacturing goods or production unit. While the residential real estate gives a annual or monthly sum to the business owner then the commercial real estate pays annual rental dollars per square foot. Lease lowdown A lease can run from one year to ten years for a commercial real estate. Expert says when a shorter lease takes flexibility to adjust the loan payment then the bigger loan provides security especially with credit tenants. Some of commercial real estate lease structures is- 1.Single net lease: It makes the tenant to pay the property taxes 2.Double net lease (NN): It makes the tenants to pay property taxes along with insurance. 3.Triple-net-lease(NNN): It makes the tenants to pay property taxes, insurance and maintenance 4.Gross lease: Here the tenants only pay rental fees, and the landlords pays property taxes, insurance and maintenance

  2. Investing in commercial real estate To invest in commercial real estate is now more lucrative. Here investor can be profitable by the appreciation selling or from tenant’s rental fees. Some of developers do not sell the whole property, sometimes they sell it by dividing the property in some small units. Advantage in investing commercial real estate Commercial real estate finds its real benefit in longer rental contracts which is comparably larger than residential real estate. It comes with considerable cash flow stability as long as the building occupied by tenants. Disadvantage of commercial real estate Rules and regulation is main problem to invest in commercial real estate. Tax, maintenance responsibilities for commercial properties are buried in the layer of legalize what changes according to size, state, industry and many other designations. Whatever you do with your commercial real estate business. First you need to know some considerable amount of knowledge about the industry and its legal, financial and regulatory part. If you have such knowledge then you can be able to overcome all type of roadblocks in your business. References https://en.wikipedia.org/wiki/Commercial_property https://investinganswers.com/financial-dictionary/real-estate/commercial-real- estate-1443 https://richardm82.livejournal.com/683.html

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