What Is Commercial Real Estate?

Written by Cathy Kottwitz

Blog

July 15, 2022

Commercial real estate is a broad topic. It involves searching for locations, negotiating sales or leases, as well as long-term property management. However, no two properties are the same, and issues can still arise after negotiations end. That’s why ongoing consultation is also essential to any real estate venture. Let’s take a closer look at what commercial real estate is, some of its benefits, and how we can help you accomplish your business goals. 

Commercial Real Estate 

When many people hear the term “real estate,” they often think of home sales. Although this is true, nonresidential spaces that serve to generate income fall under the category of commercial real estate. Such properties range from hotels and apartment complexes to shopping malls, restaurants, warehouses, and office spaces.

There is some clear overlap between residential and commercial real estate. Both deal with the sale, lease, and purchase of land, lots, and structures. All real estate agents must take educational classes and pass a licensing exam to practice in their respective states. The processes involved in residential and commercial real estate are also similar, with some key distinctions.

One of the main distinctions is that commercial real estate agents generally work with businesses and investors rather than families and individuals. That’s because commercial spaces often require a larger initial investment than single-family homes. Furthermore, commercial property owners usually don’t inhabit their properties in most cases. They instead prefer to sell or lease them to others in order to generate income. This explains why commercial real estate leases tend to stretch over longer periods than residential ones, with some lasting upwards of ten years. 

Benefits of Commercial Real Estate for Business Owners 

Business owners have a lot on their plates. Managing any number of clients, contracts, and expenses requires a great degree of skill, commitment, and attention to detail. Savvy entrepreneurs will need a place to work other than their homes, and most successful businesses aim to expand into new locations over time. This is when finding the right commercial property becomes absolutely essential. 

There are many benefits of commercial real estate for business owners. For instance, entrepreneurs often work from their home office, basement, or garage until their venture becomes sustainable. At that point, they may wish to enlist any number of employees to help with everyday tasks. A dedicated commercial space makes this transition not only possible, but attractive for prospective hires. It also communicates authority, convenience, and professionalism, encouraging more clients and customers to visit the location. Leasing a commercial space is one of the best decisions any business owner can make if they wish to grow their company over time. 

There’s nothing wrong with leasing a commercial space for your business. However, it simply doesn’t compare to owning your own property. Established businesses may purchase their own commercial properties for many reasons. It allows them much greater freedom to customize the spaces according to their unique needs. If the property is large enough, they can even lease out surplus space to aspiring entrepreneurs. For example, so-called “coworking spaces” of individually leased offices are becoming increasingly popular, as are multipurpose flex spaces that may feature a combination of office, retail, and industrial areas. Commercial properties also provide business owners with tax advantages, equity options, and the chance for their assets to appreciate considerably. 

Our Commercial Real Estate Services

Almost anyone can enjoy the benefits of commercial real estate. It doesn’t require any kind of college degree or professional certification to get started. All you need to be successful with commercial real estate is knowledge, preparation, and the right advisors in your corner.  

Commercial real estate doesn’t have to be intimidating. Our team of experienced professionals can help you find the perfect property to suit your unique business goals.

We offer tenant, buyer, and property management services, assistance with sales and leasing, as well as customized consulting for a wide variety of situations.

Our experience is your advantage, and we’ll be your dedicated partner throughout the entire decision-making process and beyond. 

Whether you’re looking to start a business, expand your horizons, or become an investor, we’re your guide to commercial real estate. We encourage you to contact us with any questions and concerns, or for more information on our available listings. We’ve helped dozens of businesses in Lincoln, Nebraska, find their perfect location, and we’ll gladly do the same for you. 

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