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Commercial Real Estate Essay examples

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Commercial real estate is any property other than a single family home or a residential lot in a neighborhood. The commercial real estate market is handled very similarly industrial and residential real estate markets. The commercial real estate market goes through ups and downs just like any other investment market however investments into commercial real estate can be a very wise decision.
Commercial real estate is similar to industrial and residential real estate in that when you buy it you are buying a building or land. What separates these three types of real estates is how they are zoned and what they are used for. Since these three real estates are so similar the question can be asked, “What exactly is commercial real estate?” In a…show more content…
For a company to qualify as a REIT with the IRS, a real estate company must pay out dividends equaling 90% or more of their taxable profit. By being considered a REIT, a company avoids corporate income tax. A regular corporation makes profit and then pays taxes on the entire profit. Then they decide how to distribute their after-tax profit between dividends and reinvestment; a REIT simply allocates all or almost all of its profit and skips taxation. As well as buying buildings and REITs investors can acquire plots of land as commercial real estate as well. Purchasing real estate as a company or as a personal investment can be extremely confusing even for experts as it is a venture with risk, as buyers, sellers, agents, and renters alike can suffer the consequences of a dip or spike in demand. Thus, it is important that you enlist the help of a group of experts that help determine the right time to buy or sell, the right locations to consider, and the specifics of closing the deal. This group can include accountants that help determine what your business can afford, Lawyers to help with legal documents and transactions, mortgage brokers to help with financing options, and commercial brokers to help identify potential properties.
With all of the risk that is involved with commercial real estate many times the
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