What is Commercial Real Estate and How is it Important for the Economy?

Any property that is owned for producing income is commercial real estate. There are five broad categories of commercial property, and they are as follows:

  • Retail: This group includes big box retailers, outdoor strip malls, and indoor shopping malls. This group also includes restaurants and grocery stores.
  • Hotel: This category of commercial real estate includes luxury resorts, business hotels, and motels. Rent out rooms are not listed in this category.
  • Office Buildings: It is a type of a commercial real estate consisting of all offices and skyscrapers that serve a commercial purpose.
  • Apartment Buildings: These are also considered commercial property, and this is because companies own such properties for generating huge profits. This is the reason why houses rented by their owners are residential properties and not commercial properties.
  • Industrial Buildings: These are buildings or structures used for manufacturing, distributing or warehousing products. These properties are not always considered commercial but only in particular situations.

There are other smaller categories in commercial real estate, and these include non-profit organizations like schools and hospitals. The Even vacant land is considered commercial property provided it is leased and not sold off.

How is Commercial Real Estate Important for the Economy?

There can be absolutely no doubt in the fact that commercial real estate can always contribute to the economy. This is because most categories of commercial properties are meant for generating income, and they produce a huge amount of revenue. This way, they are one of the most significant contributors to the economy. Individuals can easily predict things in the commercial real estate market by going through the ups and downs of the market.

Best Way of Investing in Commercial Real Estate

REITs or real estate investment trusts serve as one of the safest ways for the individual investors to make a sound investment in commercial property. This is because REITs are sold and bought on the stock market. REITs distribute taxable income to the investors same as stock dividends. They also limit risks by allowing individuals to own properties without taking out mortgages. Finally, professionals are managing the property helping you save money and time.you can follow hansongallery-nola.com.


Investing in commercial property is one of the best ways of ensuring good income in the future. Therefore, if you have money in hand think of making commercial property investments.