Commercial property

Commercial property

The term commercial property (also called investment or income property) refers to buildings or land intended to generate a profit, either from capital gain or rental income.[1]

Definition

Commercial property includes office buildings, industrial property, medical centers, hotels, malls, retail stores, shopping centers, farm land, multifamily housing buildings, warehouses, and garages. In many states, residential property containing more than a certain number of units qualifies as commercial property for borrowing and tax purposes.

Commercial real estate is commonly divided into four categories:

Categories of Commercial Real Estate
Category Examples
Retail medical centers, hotels, malls, retail stores, shopping centers, public houses[2]
Office office buildings
Industrial industrial property, office/warehouses, garages, distribution centers
Multifamily (apartments) multifamily housing buildings

Of these, only the first three are classified as being commercial buildings. Residential Income Property may also be used to mean Multifamily Apartments.

The total value of commercial property in the United States was approximately $11 trillion in 2009, as measured by the CoStar Group and published in the Journal of Real Estate Management.[3]

According to Real Capital Analytics, a New York real estate research firm, more than $160 billion of commercial properties in the U.S. are now in default, foreclosure or bankruptcy. In Europe, approximately half of the €960 billion of debt backed by European commercial real estate is expected to require refinancing in the next three years, according to PropertyMall, a UK based commercial property news provider.[4]

See also

References

  1. ^ Investopedia Definition
  2. ^ "Commercial Property Investment Agency: Types of property". http://www.commercialpropertyinvestmentagency.com/index-3.php. Retrieved 2010-07-24. 
  3. ^ Florance, Andrew. "Slicing, Dicing, and Scoping the Size of the". Journal of Real Estate Management. http://www.costar.com/webimages/PressRelease/2011/Size%20of%20CRE%20Market%20Florance%20et%20al%20JREPM%20v16%20n2.pdf. Retrieved 8/18/2011. 
  4. ^ PropertyMall http://www.propertymall.com/press/article/24545

Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • commercial property — real estate that produces some sort of income producing property. Bloomberg Financial Dictionary * * * commercial property commercial property ➔ property * * * commercial property UK US noun [C or U] PROPERTY ► a building or piece of land used… …   Financial and business terms

  • Commercial Property Insurance — Insurance that is used to cover any type of commercial property. Commercial property insurance protects commercial property from such perils as fire, theft and natural disaster. This type of insurance is carried by a variety of businesses,… …   Investment dictionary

  • Commercial Property/Casualty Market Index Survey — A survey of its members in the Council of Insurance Agents Brokers regarding the commercial property/casualty market. This quarterly Commercial Property/Casualty Market Index Survey covers the rate of premiums over small, medium and large… …   Investment dictionary

  • Commercial Property Floater — A specific type of floater that is attached to an insurance policy. Commercial property floaters offer protection for business property that is not contained at a fixed location. These floaters are attached to base property insurance policies.… …   Investment dictionary

  • commercial property — Income producing property (e.g. office buildings, apartments, etc.) as opposed to residential property …   Black's law dictionary

  • commercial property — Income producing property (e.g. office buildings, apartments, etc.) as opposed to residential property …   Black's law dictionary

  • commercial property — /kəˌmɜ:ʃ(ə)l prɒpəti/ noun a building, or buildings, used as offices or shops …   Dictionary of banking and finance

  • F&C Commercial Property Trust — (lse|FCPT) is a large British investment trust dedicated to investments in commercial properties. Established in 2005, the company is a constituent of the FTSE 250 Index. The Chairman is Peter Niven.The fund is managed by F C Asset… …   Wikipedia

  • UK Commercial Property Trust — (lse|UKCM) is a large British investment trust dedicated to investments in UK commercial properties. Established in 2006, the company is a constituent of the FTSE 250 Index. The Chairman is Christopher Hill.References*… …   Wikipedia

  • property — prop‧er‧ty [ˈprɒpəti ǁ ˈprɑːpər ] noun properties PLURALFORM 1. [uncountable] LAW all the things that someone owns: • Some of the stolen property was found in Mason s house. • The President supports a tax cut on profits from sales of property… …   Financial and business terms

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”