Commercial Real Estate Explained As Never Before

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, its terms and definitions, commercial real estate property types, what a commercial space or commercial property why to buy or invest in and more.

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 vs residential Projects, 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, 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.

Read this guide, which helps you find the best commercial investment opportunities: 

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 come 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 residential units can be categorized as commercial units. For instance, the students’ housing or dorms are classified a commercial, 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 units. 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 real estate market; however, they are the most well-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 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 real estate investment, and this is why you need to buy a unit in commercial projects.

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

Through Nawy’s website, you can explore a wide range of commercial real estate options. Some examples include:

• Offices and retail spaces in District 5 by Marakez Development.
• Fully equipped offices in Jazebeya by Upwyde.
• Diverse retail and office units in Chess Field by Al Jazi.
• A variety of clinics in The Gray by Housing and Development Properties.

Nawy offers countless commercial units across prime locations, including:

• New Cairo
• Sheikh Zayed
• October City
• New Administrative Capital
• New Zayed

All accessible through the website and mobile app

Get Your Commercial Unit Now!

Now that you know 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 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 needs, your preference, and your type of activity.

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

Check Nawy Website & Get your Unit

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.