What is Commercial Real Estate?

Commercial Real Estate is any property owned for the purpose of producing income. There is about $6 trillion worth of commercial real estate in the United States, of which the five largest categories are:

  • Retail includes indoor shopping malls, outdoor strip malls, big box retailers, retail and grocery stores and restaurants. Its value is around $2.1 trillion, or represents some 36 percent of the total value of commercial real estate.
  • Hotels include motels, luxury resorts and business hotels, whether ‘flagged’ or ‘no-flagged”.
  • Office buildings include everything from Manhattan skyscrapers to your lawyer’s office. There are roughly 4 billion square feet of office space, worth around $1.7 trillion, or 29 percent of the total.
  • Apartment buildings are commercial real estate. That’s because companies own them only to turn a profit. There are around 33 million square feet of apartment rental space, worth about $1.44 trillion.
  • Industrial property generally is used to manufacture, distribute or warehouse a product. There are 13 billion square feet of industrial property worth around $240 billion.

There are other commercial real estate categories are much smaller. These include multi-family, some non-profits, such as hospitals and schools. Vacant land is commercial real estate if it will be leased, not sold.

To find out more about how Perenica Commercial Capital can help you with financing Commercial Real Estate, see the links below:

Commercial Real Estate Financing
Stated Income Commercial Real Estate