Commercial Real Estate Properties

Let's take our conversation a little further away from residential real estate and navigate the world of commercial real estate and learn more details about what commercial real estate is and its characteristics, why investors may resort to buying it, and how they achieve interest by owning it.

Can commercial real estate be compared with residential real estate? 

In fact, the comparison between commercial and residential real estate may not be appropriate, because the purpose differs between the two types, although the goal of residential real estate may sometimes be to invest it and make a profit from renting or selling it, commercial real estate has characteristics and advantages that make it more desirable for investors.

What is commercial real estate? 

Commercial real estate is every building designated for investment and economic businesses that are not qualified for housing, and the main purpose of commercial real estate is to make profits; This is through sales or rental operations, or the use of real estate in various services.

Whatever type of real estate activity a real estate investor wants to practice, Homes Jordan has the most powerful experts, advisors, and tools that help guide clients to make the right decision or manage real estate with high professionalism.

Types of commercial real estate

Commercial real estate differs in Amman, Jordan, and depends on different administrative regulations within the capital, Amman, and includes the following types:

1. Office commercial buildings. They usually include companies and offices. Either the building includes several companies or is dedicated to one company, depending on the size of the company and the nature of its work.

2. Commercial shops: it depends on the commercial activity that the person practices.

3. Retail stores: such as restaurant supply chains, international brands, or agencies.

4. Warehouses and stores.

5. Industrial real estate: it varies according to light or heavy industries and requires specific ground and building specifications.

6. Hotels 

7. Commercial centers (malls): These may include shops or retail stores, restaurants, and entertainment venues.

What are the characteristics that distinguish commercial real estate? 

Despite the many types of commercial real estate, each type must have different characteristics that make it competitive and attractive to clients and customers, and these characteristics contribute to raising the value of the real estate.

- Location: if the property is in the city center and within main streets; And close to the facilities

And service or government institutions, as this contributes to raising the value of the property, and therefore the opportunity to rent or sell will be stronger, and thus high profits.

Multiple uses: Some commercial real estate, such as shops and retail stores, are characterized by the possibility of multiple uses, and therefore the ease of benefiting from the strength of economic activity according to various factors such as location and population density. To another economic activity that is greater to avoid the loss that may occur as a result.

Supply and demand: The supply of commercial real estate is little compared to residential real estate. The demand for residential real estate is greater than the demand for commercial real estate, and only investors seek to buy commercial real estate. For investors to provide commercial real estate to fill the shortage in commercial real estate.

- Financial stability: Commercial real estate is characterized by the stability of its cash flows to a certain extent, and this depends on various factors, including good management, taking advantage of opportunities, and converting real estate activity in the event of decline to another activity that is more stable and in demand.

Investment return: Whether through sale or rent, the investment return of commercial real estate generates investment returns in all commercial cases.

Tax benefits or investment incentives: Commercial real estate owners have different powers to obtain tax benefits or investment incentives.

The comparison between commercial real estate and residential real estate may only benefit the investor and those who wish to enter the field of real estate development

And that depends on the commercial activity that the investor wants to practice by owning or renting this commercial property, and on the goal, he wants to achieve. People who need homes for housing, stability, and obtaining a permanent job more than people who seek real estate investment.

Therefore, the investor is the only one who must compare commercial real estate and residential real estate to ensure that either of them achieves the goal that he set.

We at Homes Jordan, as a specialized real estate agency, are constantly trying to cover all the details related to the real estate field.

And always remember, the Homes Jordan team in Amman - Jordan is ready 24/7 to provide real estate services and answer all your inquiries.