Real estate can be used for commercial purposes or business activities too. Commercial properties are of various types namely industrial business units, wholesale or retail trade units, shopping malls, office complexes, hotels, restaurants, light manufacturing units or even vacant land as such but not for residential purposes by any chance. Common sources of commercial property includes basic facilities one needs around his residence or work place like hospital, markets, gas stations, convenience stores, parks, clubs, community centers and so on. It could be the local grocery store too that one needs to visit on a daily basis for his day to day needs. Or else it could be the office buildings or area around the work place. Such property is solely and wholly used for business purposes and is one of the main types of real estate much needed by the people. Real estate agencies and agents like Joe Johnson Welfont help others look for such places as per their requirements and budget. Their role cannot be denied at any cost and they are very much important.
Commercial real estate is one such thing, which is ideally used only for business purposes and keeping in mind the aim of making money. Hence, it is related to business and commerce. It can be used for the production of various kinds of goods and other items and finally its manufacture too. Such properties are generally leased out to the demanding party for them to carry off their businesses and thus make profits in the process. Lease agreements and the required paperwork must be done beforehand in order to avoid any future misunderstandings and confusion among the parties. Real estate agents like Joe Johnson Welfont help people fulfill this dream of theirs and making it a reality.
Types of Commercial Real Estate Leases
One can very well say that there are four main or major types of commercial real estate properties, each having different roles and responsibilities of both the owner, i.e., the landlord and the tenant. These can be listed down as below:
- Single Net Lease – In this type of lease, it’s the tenant who is liable and responsible for paying property taxes.
- Double Net Lease – Here the tenant is liable for paying property taxes as well as the insurance too.
- Triple Net Lease – In this case, the tenant is also responsible for paying maintenance along with property taxes and insurance.
- Gross Lease – Here the tenant pays only the rent part and rest all needs to be looked after by the landlord himself for his building or property.
Now the question arises “Why do people need to invest in commercial real estate?” People investing in such type of estate need a huge amount of working capital and broad and wide knowledge of the various aspects of the field to make the right deal at the correct time. One can certainly and surely depend on the real estate agents or agencies or trusts for such real estate need in order to avoid all sorts of hassles.