Commercial real estate

How it is used

Often shortened to CRE in the industry. Commercial real estate is usually leased to businesses on long contracts and valued mainly by the income it produces. British English often says commercial property.

Example sentences

1. He moved from selling homes to commercial real estate five years ago.

2. Demand for commercial real estate near the new airport is growing.

Common collocations

• commercial real estate broker
• commercial real estate market
• invest in commercial real estate
• commercial property (UK)

Related terms

• office spaceRooms or floors in a building used or available for office work, usually leased to companies by the square foot or square metre.
• retail spaceCommercial property used for selling goods or services to the public, such as shops, showrooms and units in shopping centres.
• net operating incomeA property's yearly income from rent and other sources minus its operating costs, before mortgage payments and income tax are taken off.
• cap rateShort for capitalisation rate: a property's net operating income divided by its value or price, used to compare returns on income-producing buildings.
• residentialUsed for, or made up of, homes where people live, as opposed to offices, shops or factories.

More terms: Commercial Real Estate

• triple net lease
• fit-out
• anchor tenant
• break clause