HOW TO DETERMINE THE BEST USE FOR THE COMMERCIAL PROPERTY?

HOW TO DETERMINE THE BEST USE FOR THE COMMERCIAL PROPERTY.pdf

In India's commercial complex plan, real estate has always been an integral part of one's investment portfolio. Not only because of the potentially huge returns but also because of the equivalent pride of ownership. But not every investment in the real estate market brings good returns. There are many examples where investing in a commercial complex plan has become frustrating for investors. But commercial and residential real estate responds differently to situations. Residential is the preferred asset class, as the demand is trimmer and more slot than commercial real estate in India. Instead, retail investors understand commercial properties better than residential properties. Considering the massive demand for a property like houses, flats, apartments in most cities, residential realty provides an authentic rental income if chosen well.


Commercial Properties:-

  • Office buildings

  • Retail building

  • Warehouses

  • Industrial building

  • Apartment buildings

Why do you have to invest in commercial property?


Here are some of the advantages of buying commercial property in real estate over residential property.


Commercial property plan as an Income Potential:- An excellent reason to invest in commercial over residential is the rental earning potential. Commercial properties typically have an annual return of purchase price between 6–8% and 10–12% depending on the region, external factors (such as a pandemic), and the current economy. Such ideas of commercial properties in the following way.



  • Industrial buildings:- Industrial buildings include features such as loading docks for trucks, an accessible flat roof with various electrical points, perhaps large refrigerators, etc. Make the tremendous industrial rental property possible, depending on the tenant's purpose.


  • Manufacturing facilities:- The place can use for goods or material production.


  • For opening restaurants:- Commercial properties can also use as restaurants. Such properties can vary in complexity and size. However, it should have ample space for the kitchen, storage room, pantry, commercial appliances, and refrigerated area.


  • Shopping Center:- Another way to use commercial property is to convert your property into a shopping center. If your property is large and there are multiple units in a single premise, it would be apt to utilize commercial office space such as shopping malls or complexes.


  • Warehouse:- We all know that warehouse is a necessity for almost all types of businesses. Need Commercial space for rent with an open room that can accommodate large quantities of material and is equipped with great rack systems used as a warehouse.

Commercial office space is divided into three categories:-

Class A, Class B, and Class C. Office buildings are classified based on the location of the building.


  1. Class A: This includes all buildings that are best-in-class in terms of location and construction. It is one of the best among office space businesses.


  1. Class B: All office buildings are best in construction, but there is space constraint.


  1. Class C: These include buildings that are located in unfavorable locations and are dilapidated.

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