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July 6, 2007, Newsletter Issue #138: Commercial vs. Residential Real Estate
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Tip of the Week
Commercial real estate and residential real estate are two different things. Residential real estate is generally real estate property that the owner buys and uses as a primary or secondary (vacation) residence. Commercial real estate, on the other hand, is real estate property that is primarily intended to generate income for its owner. Examples of such property are multi-family dwellings, retail space, warehouses, office buildings, and hotels or motels. A commercial real estate investor owns the property and derives income by leasing the space to tenant, be those tenants families renting apartments or multi-national corporations leasing office space. Like its residential counterpart, the commercial real estate market encompasses a full range of service providers, including commercial real estate appraisers and lenders who specialize in commercial real estate loans.
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