Commercial real estate is a property used for business purposes. Most often, commercial real estate is leased to tenants to conduct business, or the landlord is conduct business in collecting rental income. This category of real estate ranges from an apartment building to a shopping center or hotel.

​

Commercial properties may refer to:

• retail buildings

• office buildings

• warehouses

• industrial buildings

• apartment buildings

• hotel and motel

• student housing

• one to four family investment property

• “mixed use” buildings, where the property may have a mix, such as retail, office and apartments.

​

Investing in commercial real estate can be rewarding. Investors can make money on a monthly basis by collecting the rental payment but also through property appreciation when they sell.

​

Investors can invest directly in the property as investments and become landlords with active management. People best suited for direct investment in commercial real estate are those who either have a considerable amount of knowledge about the industry or who can employ firms who do. Commercial properties are a high-risk, high-reward real estate investment.