Commercial Real Estate Vs. Residential

Real estate is a long-standing and popular form of investment and owning property is an excellent way to diversify your portfolio. An important aspect of property investment is understanding the difference between commercial and residential property for sale.

Three Ways Commercial and Residential Property Differ

  • Types Of Properties: the first difference is in how the properties themselves are used. Residential property refers to dwellings such as apartments, homes, and townhouses. By comparison, commercial property refers to nonresidential dwellings such as office space, warehouses, hotels, and retail stores.
  • Different Types Of Terms and Tenants: when renting out residential property, the terms of the lease are shorter (some as short as six months) than with a commercial property. Commercial can range from 5 to 10 years in length, have longer lease terms, and a different tenant profile. Additionally, a commercial tenant often has greater financial backing and can be more respectful of the property due to it being a place of business.
  • Increasing Property Value: when directly compared to residential property, a commercial property is often easier to increase in value. The value of a residential property is due to similar surrounding property and the growth and development of the general location. Both factors are out of your hands. With commercial property, an increase in value is more focused on how much revenue its tenants generate. This gives you greater control of increasing its value through careful tenant screening.

Contact the Experts at Harkins Commercial Real Estate

As the above facts show, commercial real estate for sale in Lake Mary, Florida offers you a unique investment opportunity. However, it does require a proper understanding of the type of property in which you are investing. At Harkins Commercial Real Estate, we can help guide and advise you in your commercial property purchases. Give us a call today at 407.323.9310.

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