What is the Definition of Commercial Realty?
So, you’re here because you want to know the definition of commercial realty. Unofficially, there are two different meanings of this phrase. Here, we’ve outlined each meaning, and also packed in some tips on buying commercial real estate!
1.) Commercial Realty, as in Real Property or Commercial Real Estate
The official definition is real property or commercial real estate. Basically, that means commercial property consisting of land and any buildings or structures that may sit upon it.
That isn’t always the case, though. For example, a person in a major city ownd a building but the city retains control of the land underneath it (with certain exceptions). For the most part, though, ownership of the land is primary.
Tips When Buying Commercial Realty
It’s critical to understand exactly what type of commercial realty you’re purchasing when investing in a building or storefront. It’s also important to know what type of tax structure will be required, and what will be expected of you by municipal governments.
There are many questions that you might ask when looking for your own commercial property. But it’s important to understand what it is that you’re really looking for. Most people don’t understand the intricacies of property ownership; nor what it means by discussing the “investment” end of it.
The idea of commercial realty being a self-contained “investment” is somewhat skewed. Yes, there is the likelihood that the value of the real estate in which you own will increase over time. That generally happens with commercial real estate investments, though there are notable exceptions both on small and large scales. What you need to understand is that property is actually a fairly poor investment in and of itself. Sure, the value of the building you own may be higher than when you bought it; however, you’ve also probably put a lot of maintenance expenses into your property, which offsets any profit you may make. The value that you gain is in the use of the property and any buildings located on it. The land and the building will probably never reach the value that you’ve invested in them, but they will pay off in the business that you built there.
It’s important to be mindful of how your commercial realty affects the businesses and people around you. Sure, it’s your property to do with as you please, but the condition you keep it in, the style of business you own, and many other factors, affect the value of everyone else’s properties located nearby; so be a good neighbor and consider others in your community.
If you’re new to investing in commercial real estate, it can seem daunting. Being a property owner is not an easy role, nor has it ever been. However, it can absolutely be worth the time and effort that you’ll need to expend in order to own your own piece of Columbus realty.
2.) Commercial Realty, as in Commercial Real Estate Firm
While commercial realty does officially refer to real property, nowadays, it’s more commonly used when referring to a commercial real estate firm. It can also mean the services offered by commercial brokerages, as well as individual commercial real estate brokers, agents, and property managers in regards to the purchase, sale, lease, rent, and management of commercial real estate.
Are You Looking for a Commercial Realty to Help You Buy or Sell Commercial Realty?
See what we did there? The Robert Weiler Company is a premier commercial real estate brokerage serving Central Ohio investors since 1938. Find out how you can leverage our commercial realty expertise today; call us at 614-221-4286 and schedule a free consultation.