Commercial Real Estate Explained As Never Before | Nawy

The real estate sector is a huge one with many types, sections, and categories. Inside these categories, you can find residential real estate, commercial real estate, and many options in between.

The different types of units are usually intertwined with different types of real estate along with the investment options. Usually, people are confused between both or they don’t even understand the difference in nature, investment options, and types.

This is why this article will be your full guide for understanding commercial real estate, commercial real estate terms and definitions, commercial real estate property types, what is a commercial space or commercial property why to buy or invest in commercial real estate, and investment options in the commercial real estate market.

What is Commercial Real Estate?

When it comes to real estate, people usually think that any property can be used for all uses and they cannot differentiate between the different uses and types of properties.

However, our focus for this article will be commercial real estate, commercial real estate definition its types. Commercial real estate is a term that refers to properties used for business, and non-residential purposes to generate income from these units.

Commercial real estate is usually a space that generates income through capital gain or rental income. Also, commercial real estate properties usually have different specifications from the mere residential ones.

When it comes to differentiating between commercial and residential real estate, we can differentiate between them according to four aspects; purpose of use, price, occupants, and rental terms.

As for the purpose of use; the commercial units- unlike residential ones – are merely used for different business needs and cannot be used or even shifted to residential use.

The price of commercial real estate spaces is usually higher than residential ones since they usually come in larger spaces and have different specifications.

The occupants of both are definitely diversified since those of the commercial real estate areas are usually business owners and tenants whilst those of the residential units are usually owners.

Finally, as for the rental terms, commercial real estate is known to have longer leasing terms than residential units.

Now, since you know what commercial real estate is and you know the difference between commercial and residential real estate, you can get to know the different types of commercial real estate.

What are the Types of Commercial Real Estate?

Commercial real estate has many categories and types according to the purpose of use and thus the need to buy commercial real estate spaces depends on your purpose for purchasing the unit.

Among the commercial real estate unit types we can find:

1. First and foremost, office spaces and buildings are usually found in larger specialized buildings or intertwined into residential projects. Offices feature different areas to offer flexible options for all business sizes.
2. Then comes the industrial properties that can be used to be a warehouse, a showroom, a manufacturing space, a facility space, or a storage unit.
3. Some special types of residentially-used units can be categorized as commercial units. For instance, the students’s housing or dorms are classified a commercial real estate property not residential.
4. The units used for hospitality services are considered commercial ones such as boutique hotels, casinos, resorts, and mere hotels, clinics, and hospitals.
5. The most well-known type of commercial space is retail space, retail commercial real estate. These come in different sizes and specifications and can be used in different retail uses such as shopping centers, malls, supermarkets, hypermarkets, and strip malls.

These are not the only unit types and the only option to buy in commercial real estate however, they are the most known.

By now, we can talk about the investment options in commercial real estate.

Investment Options in Commercial Real Estate

Investing in real estate in general is known to generate a very high return on investment (ROI), yet commercial real estate investing has a higher return than residential.

The process of commercial real estate investment implies putting your money into a commercial space and renting this space to generate capital gains or rental income.

This can happen when you purchase a full building and rent it as office space to a business owner who wants to extend his company’s offices. Or when you rent your space for a retail store that wants more branches opened.

Putting your money into any space and then renting it or using it to generate income from commercial use is considered to be a commercial real estate investment and this is why you need to buy a unit into commercial real estate.

Why don’t you see examples of this investment in commercial offices or retail units to generate profit in the following section?

Examples of Commercial Units

Thanks to Nawy‘s website, you can find many options for commercial real estate units. For example, you can find:

• Offices and retail units in District 5 by Marakez Development.
• Also, you can find fully-fledged offices in Jazebeya by Upwyde.
• Chess Field by Al Jazi offers different-sized retail and office spaces.
• The Gray by Housing and Development Properties features a wide collection of clinics.

In fact, there is no limit to the number of options in Cairo City, New Ciro‘s 5th Settlement, Sheikh Zayed, October City, New Capital City, or New Zayed commercial units that are found on Nawy’s website and mobile application.

Get Your Commercial Unit Now!

Now that you have known all about commercial spaces and their uses, you can start looking for your next commercial unit either to invest your money in or to use it for your business, retail store, or clinic.

Thanks to Nawy’s property consultants team you can easily find the best fitting unit for your budget, your need, your preference, and your type of activity.

Just fill in the below form to get in touch with our team and they will do the rest.

Also, don’t forget that you have multiple investment options thanks to Nawy Shares.

We hope you find the best commercial unit for your needs.