Commercial property
As a commercial property is referred to a building or part of a building which is used exclusively or predominantly for business purposes. Typical uses are commercial buildings such as offices, workshops, storage areas, retail spaces, studios and lofts.
The commercial property is on the treatment of tax law ( tax, depreciation ) to delineate the area of financing and development rights of residential properties and special properties. A property can by their nature, however, both residential as well as commercial purposes ( eg, apartment, office, loft, studio, farm).
Types of commercial real estate
There are five different types of commercial properties. These include, on the one hand the production properties, which are characterized in that they have to bring a very high flexibility in expansion and third party usage with it. Examples of production properties are warehouses, distribution centers, cold storages and storage halls. Shopping malls, supermarkets and shops are some of the real estate. The rate of return that will be achieved, always depends on the activity of the dealers. Also logistics properties and office properties are commercial properties. The range of leisure real estate is comparatively risky because trends in the industry are usually short-lived and the success largely depends on the operator. Special properties are a particular area, because they have a wide variety of possibilities of use on. These include, for example, train stations, truck stops or metropolitan area nightclubs.
Assessment procedures
In the context of property valuation, differences between residential and commercial properties arise. While owner-occupied residential property (single- family and duplex houses) are generally valued by the cost approach, the assessment of commercial real estate and rental residential is generally carried out using the income capitalization approach.
Legal regulations in Germany
Taxation
The taxation under the property tax is different in Germany after use and defines different property tax metrics for residential and commercial properties. In connection with the reform of corporate taxes is discussing the introduction of a "property tax C" ( for commercial property ) as a partial replacement of the business tax.
Tenancy
Commercial lease permit in Germany (unlike residential property ) an extensive freedom of contract. Thus, there is no legal protection of tenants.
Commercial real estate market
Commercial Properties compete both tenants as well as on the investor side at regional, national and international markets. Among other things, due to the lower binding contract and the greater cyclical sensitivity of tenants commercial real estate markets are characterized by a greater momentum than the markets for residential real estate.