Commercial spaces are the spaces
that are used for business activities and these properties have the potential
to generate profit through capital gain or rental income. There are many types
of commercial properties all over India that are home to many business
organizations. The designation of a property as a commercial property has
implications on the financing of the building, the tax treatment, and the laws
that apply to it.
Malls, grocery stores, office
buildings, manufacturing shops, etc. all are a part of commercial property. The
performance of the commercial property is often used as a measure for business
activity in a given region or economy.
There are many types of
commercial spaces. Some of them are as follows:
Office- Office buildings are of two types- urban or
suburban. As the name suggests urban office buildings are found in cities and
include skyscrapers and high-rise properties. Suburban office buildings are
smaller in stature and are grouped in office parks. Office buildings can be
both multi-tenanted and single-tenanted.
Retail- Retail comprises the properties that house the
retailers and restaurants and they can be multi-tenanted or single-use
standalone buildings. Regional malls, community centers, shopping stores, etc.
are all part of the retail.
Hotel- Hotels are also a part of commercial spaces and this
sector includes establishments that provide accommodations, meals, and other
services to the tourists.
Industrial buildings- These commercial spaces allow space for
industrial operations for a variety of tenants and are mostly located outside
of urban areas. These areas can be used as wholesale warehouses, distribution
centers, and repositories.
Multifamily- The multifamily sector of the commercial property
covers all types of residential real estate outside of single-family that may
include high-rise apartment buildings or apartment complexes.
Investing in commercial vs. residential property
If you are deciding to invest in
a property then you must choose the commercial property because it has
traditionally been seen as a sound investment. The initial costs of investment
of the building and the costs associated with customization for tenants are
much higher than residential real estate, but the overall returns are also
higher.
Commercial property investors can
also utilize the triple net lease, where the risks are passed on to the leasing
business to a level that is not available to residential real estate investors.
Apart from that, commercial property tends to have more straightforward pricing
considerations. If you choose a residential property then you might have to
look at a number of factors, including the emotional appeal of a property to
prospective tenants. Whereas if you invest in commercial properties then you
will have an income statement that shows the value of the current leases, which
can then be compared to the capitalization rate for other commercial property
opportunities that are available in the area.
If you are looking for a commercial space then the commercial spaces in Jaipur are the best options for you. The R Tech Group is offering commercial space for sale in Jaipur and you can invest in those spaces as R Tech Group is a prominent name in the real estate industry.
