Commercial property refers to immovable property used for industry. Commercial property typically refers to a building that house businesses, land that is intended to make a profit, and larger residential rental properties.
The classification of a property as a commercial property has implications on financing, tax treatment, and the laws which apply to it
The designation of a property as a commercial property has implications for how it is financed, how it is taxed, and how the laws are applied to it.
Commercial property has traditionally been seen as a sound investment. Initial investment costs for the building and costs associated with customization for tenants are higher than residential real estate. However,overall returns can be higher, and some common headaches that come with residential tenants aren't present when dealing with a company and clear leases.