Commercial Real Estate
Published December 19, 2011
Commercial Real Estate
The term "commercial real estate" classifies all property that is used for business construction and operation. Examples of commercial real estate include office buildings, malls, shopping centers, hotels, and warehouses. Companies may decide to own or lease the land and buildings where they conduct business. Property costs vary by location, building conditions, and economic viability in surrounding areas. When starting a business, a company has a variety of leasing and purchasing options.
Executive offices are examples of leased commercial real estate. Building owners rent office space to different businesses. These spaces can range from individual offices to suites, floors, and entire buildings. Typically, the company's owner is not the building owner, and several different companies may share executive offices within a building. The building's owners gain an income in the form of rent from the businesses who lease executive offices. Executive offices are ideal for small or medium sized companies. Typically, companies can rent executive offices for a fixed lease term and can relocate depending on company growth. Renters maintain utility costs such as heating and air conditioning while property managers cover maintenance costs.
Retail space describes the type of property that a business needs to operate a store that sells goods or services. Examples of stores that select retail spaces include supermarkets, drug stores, and convenience stores. Location and appearance are very important factors for businesses looking for a retail space.
Retailers should select a space that optimizes their abilities to sell goods. It is recommended that retail businesses choose a space that best fits its staff size and inventory. Stores should also allow for some growth.
Businesses with extensive inventory require warehouses for storage. Businesses typically rent these facilities from property managers. Businesses may require warehouse space when their retail spaces cannot store enough inventories. Online retailers and wholesale businesses may rent warehouses to store their goods. Businesses should select warehouses in close proximity to their headquarters, customer base, or shipment area.
Oftentimes, a small business may rent individual offices in a building. These companies may have an infrequent need for shared space since employees work independently. In any case, these companies may sometimes require shared meeting spaces. To minimize costs, companies can rent conference rooms in conjunction with other companies. For example, a business could house three companies with independent offices. These businesses could share conference room space and implement a scheduling system to organize meetings.
Virtual offices lower costs for companies by eliminating the need for security systems, heating systems, and building fees. Virtual offices give the representation of a physical building. They can have mail services, phone services, and attendants. Many of these services are outsourced to outside centers. Virtual offices are ideal for home offices and for companies that outsource several of their departmen
Last Updated: December 19, 2011