Commercial Property

Commercial property is property that is intended to be used for a business purpose. Examples include shops, warehouses and offices. Although it is certainly possible to adapt residential property for commercial purposes, it is far more common to find businesses operating from specially-designed commercial premises.

Some commercial property is highly specialised for certain business types or even specific companies. Examples include petrol stations or steel factories. Other commercial property, such as office buildings, is more generic in nature and can be occupied by a wide variety of actual businesses.

Large companies often arrange to have their own premises built for them but it is far more common for companies to lease pre-existing commercial property for their own purposes.

Occasionally, companies which operate from property which they own may discover that the property rises in price significantly. In some cases, where there has been a major property boom in a given area, companies discover that they are sitting on hugely valuable assets. The value to the company of operating from those premises may be much less than the value of the property on the open market. There may be no compelling business reason for the company to be based in that locale, for example. Instead, it may have come about through pure happenstance. In these cases, the company may eventually to decide to relocate somewhere else, where the property is cheaper, and to sell the valuable property at its previous location.

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