The Difference Between Industrial, Retail and Commercial Real Estate


Are you too confused about what Industrial, Retail and Commercial Real Estate means and what’s with all the difference? To address this question, we’d first have to demarcate between each of the terms.

Retail and Industrial Real estate seem self explanatory, but what with commercial real estate? Commercial Real estate refers to areas, buildings or any land that intends upon generating profit. Both retail as well as industrial real estate are infact only sub categories of commercial real estate.

An industrial property is one which is used for the purpose of actual manufacting of certain goods, like is the case with factories or manufacturing plants. They are further divided into zones of heavy, medium and light industries. These include places like garages, distribution centres and any warehouses.

Retail property on the contrary is a property which is commercially zoned and intended to be used for business purposes, for selling or reselling of any goods or products. The retail property cannot be used for manufacturing and is rather found as malls, retail store, shopping centers or shops that are in huddled under the retail property umbrella.

Most businesses which occupy the commercial real estate generally lease the space. The space belongs usually to an investor who collects the rent from every business operating from the building or space he has leased out.

With different levels of responsibility required from the landlord and the tenant, there are four types of commercial real estate leases

Single net lease : Under this lease contract the tenant is relied with the responsibility of paying the rent as well as property taxes.

Double net lease: Alongside the rent and the property taxes, the tenant is also liable to pay for the insurance.

Triple net lease : Under this lease the tenant has also to pay a maintenance cost besides the rent, taxes and insurance.

Gross Lease : This lease makes the tenant liable of paying only the rent to the landlord. The property taxes, insurance and maintenance is paid by the landlord.

Are you a prospective commercial property owner?

These are certain things to consider for your own best interest:

1. Attractive Appearance : You do not want your commercial property to remain vacant for very long times and it is hence necessary that you think from the perspective of your customer. What property would they want to hire to benefit the business.

2. Aesthetic Entrance : No matter what, First impression is the most lasting impression and every business looks forward on having a good first impression on their clients. An aesthetic entrance does more to bring you prospective tenants than you’d believe.

3. Natural Light

It is important that the space is well lit and gets a good amount of natural sunlight too.

4. Location: With most commercial properties the location matters a lot. It should be accessible and close to most public transport, public amenities as well as near other commerial properties.

Retail property is on a constant boom, but you must lease carefully. Commercial Space Toronto provides you a platform you can best rely for commercial real estate on.