The Basic Facts About Commercial Real Estate
Commercial real estate properties found on eBay are often used as investments or as properties to conduct business. These establishments are non-residential assets that include office space, malls, industrial parks, and stores. Real estate investors make money on commercial real estate by collecting rental fees among other payments from tenants.What is considered commercial real estate?
Commercial real estate includes any property that fits a municipal zoning category of commercial. The term is collectively used for retail properties, apartment complexes, offices, manufacturing spaces, and education structures. Other kinds of establishments feature other corporate occupations, like a restaurant inside the estate of a gas station. It may also denote unused space like vacant lots that are in regions that are zoned as commercial.What should you consider with commercial real estate?
Regardless of the preferred real estate, prospective owners need compact business plans that cover potential problems. Therefore, before acquiring commercial real estate, you should do your homework on the property. Make sure that the documentation with any property you are going to buy and the associated business plan will take into account the following:
- Financing and the mode of payment: Assess the risks associated with the property and the amount it costs to get the property to turn a profit.
- Skill set: What will you hire out and what will you do yourself with a property?
- Time commitment: What kind of time is required to develop the property?
- Title history: Liens, easements and proof of ownership can be found in a title history report. This helps you to avoid taking on debts that are assigned to a property and not a person.
- Survey concerns: A survey conducted to show the possibilities and restrictions for development. This may be about zoning or about resources on the property.
eBay has their commercial real estate categorized. You can search for things like:
- Multiplex rental buildings: These are apartment buildings with six units or more.
- Hotels and Motels: These are short-term rental units that may include guest amenities.
- Restaurants: These buildings have commercial kitchens and dining room facilities
- Retail stores: These buildings are zoned to allow retail sales.
- Office space: This is a building in which you can legally set up a non-retail office area. They may include special building features like medical equipment, that are required to have certain business types.
- Industrial: This is a building intended for warehouse storage or manufacturing.
In many cases, you will have properties that have mixed uses. An example of this would be a building that has restaurants and retail stores on the ground floor and apartments or office space on upper floors.