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The Basics of Commercial Real Estate with Macy Newman

So you’ve decided to break into the commercial real estate business. Great! Or, perhaps you’re expanding your holdings and investment portfolio from a single office space into multiple locations with varied uses. No matter what your comfort or experience in the industry, there is always something to learn. Let these basics be either a tutorial or refresher for you as you get started.

Commercial Real Estate Property Types

Commercial real estate is simply property solely used for business purposes, which can include anything from restaurants, to malls, to gas stations, to a medical office. Rents for commercial properties are mostly expressed in price per square foot, rather than the total price or price per month used by residential real estate.

Commercial Real Estate Lease Types

Four primary lease types exist for commercial deals: single net, double net, triple net and gross. These different types explain exactly what the renter and landlord are responsible for when it comes to management of the property and its expenses. In a single net, the tenant pays any requisite property taxes. In a double net, the tenant pays the taxes and any insurance premiums. In a triple net, any needed maintenance fees are added to the list of financial responsibilities for the tenant. In a gross lease, the only thing a tenant is responsible for is rent, and all of the auxiliary costs are paid by the landlord.

How Do They Class An Office Space?

Properties can be segmented into different classes, based on quality. Office space, for example, can be subdivided into Class A, B, or C, depending on the quality, location or amenities of the property itself.

Investing In Commercial Real Estate

While investing in commercial real estate it is more involved and requires significantly more startup funding than residential real estate, help is available through trusted advisors and real estate agencies to handle regulations, taxes, and other needs. Advisors and agents like MacyNewman are available every single step of the process, from scouting locations and determining your business’ needs to making sure every line of the lease is agreeable to all parties involved.

It doesn’t matter if you’re just starting out in the world of commercial real estate or have had experience, contact us by calling or filling out the form below to find out exactly how MacyNewman can make your investment a success.