Commercial and residential real estate are two different animals. Most states define residential real estate as buildings which contain one-to-four living units while commercial real estate is any real estate used for commerce. Commerce is defined as the interchange of goods, products, services or commodities which are bought and sold.
The main classifications of commercial real estate are:
1. Apartments (5 or more units) also called Multifamily
2. Retail
3. Office
4. Industrial
5. Lodging & Hospitality
6. Restaurants
7. Specialty
There are many subcategories of these main classifications. Some are intimidated by commercial real estate and think they don’t know enough to invest in it but commercial real estate can be big or small, complicated or simple. Don’t be afraid to invest in commercial real estate with someone who knows what they’re doing. It can be very lucrative!
ABOUT THE AUTHOR
Ken has been in the real estate business for over 40 years and has personally overseen the development and management of over $350 million worth of assets. Ken holds a B.S. degree in Accounting from Brigham Young University, a MBA from the University of Utah. Licensed real estate broker since 1976. He holds the following designations: CCIM, CPM, CRS,CCA. Served as the president of the Utah Apartment Association.