Commercial Real Estate
What Is Commercial Real Estate (CRE)?
The simplest way to define commercial real estate is a property that has the potential to generate profit through capital gain or rental income. Commercial property can be anything from an office building to a residential duplex, or even a restaurant or warehouse. If you can make money from leasing it out or holding it and reselling it, it’s a commercial property.
Key Takeaways
Commercial real estate refers to properties used specifically for business or income-generating purposes.
The four main classes of commercial real estate include office space, industrial, multi-family rentals, and retail.
Commercial real estate provides rental income as well as the potential for some capital appreciation for investors.
Investing in commercial real estate usually requires more sophistication and larger amounts of capital from investors than does residential real estate.
Publicly traded real estate investment trusts (REITs) are a feasible way for individuals to indirectly invest in commercial real estate.