What is Commercial property?
A Commercial property loan used for purchase commercial property, included offices, retail shops, warehouses, industrial properties, factories, In
urban locations.
A commercial property may combine functions, such as offices , When space allocated to multiple functions is significant, these property can be called
multi-use.
Local authorities commonly maintain strict regulations on commercial zoning, and have the authority to designate any zoned area as such a business
must be located in a commercial area or area zoned at least partially for commerce.
Commercial property loan refers to immovable property used for industry. Commercial property typically refers to a building that house businesses,
land intended to make a profit, and larger residential rental properties.
Commercial property, also called commercial real estate, investment property or income property, is real estate (buildings or land) intended to
generate a profit, either from capital gains or rental income.
Different types of commercial property loan?
Retail – offices, retail stores, shopping centers, retail shops.
Industrial – warehouses, factories.
Leisure – hotels, pubs, restaurants, cafes, sport facilities.
Healthcare – medical centers, hospitals, nursing homes, schools.
Commercial property includes office buildings, medical centers, hotels, malls, retail stores, farm land, warehouses, and garages.
In many states, residential property containing more than a certain number of units qualifies as commercial property for borrowing and tax purposes.
Key Differences between Commercial and Residential properties
While residential properties are exclusively used for private living quarters, commercial refers to any property used for business activities.
Commercial property loan refers to hospitals, assembly plants, storage warehouses, shopping centers, office spaces, or any other location for a business enterprise.
Loan Tenor – The tenor for a commercial purchase property can be as long as 10-15 years.