COMMERCIAL REAL ESTATE IN AJAX
Ajax is a town located in the centre of the Durham Region. Ajax is a waterfront community with diversity and vibrancy. This community is very progressive and innovative. Ajax is known for its peaceful community, rich history, and beautiful nature.
Real estate agents and lawyers in Ajax provide the best legal and expert counsel when it comes to acquiring or leasing out a commercial real estate space. Real estate agents in Ajax have access to a large database of commercial properties and can help businesses find their ideal space.
Ajax, Ontario is a great place to set up a business. The town has low crime rates, has a great system for sustainable development initiatives, and has a diverse community. The development of Ajax over the last few years have greatly contributed to its increased economy.
COMMERCIAL REAL ESTATE (CRE): WHAT IS COMMERCIAL REAL ESTATE?
Unlike residential real estate, commercial real estate property is reserved exclusively for business purposes. Commercial real estate properties are usually leased out to tenants for income-generating activities. Examples of commercial real estate include hospitals as well as other health facilities, strip malls, restaurants, and hotel resorts.
Commercial real estate can come in the form of a single storefront to a huge shopping centre. Commercial real estate is grouped into 4 main classes. These include; multi-family rentals, retail, industrial and also office spaces. Commercial real estate requires a larger amount of capital from investors. This means that typically the price of commercial real estate to residential real estate is significantly higher.
THE FUNDAMENTALS OF COMMERCIAL REAL ESTATE
Real estate property is comprised of two categories. This includes residential property and commercial property. Structures mainly built for the purpose of human habitation are referred to as residential property. Residential properties are not for industrial or commercial use. Commercial property is pretty self-explanatory. Commercial properties are used for commerce or business purposes.
CLASSES OF COMMERCIAL REAL ESTATE
1. Retail use
2. Office space. This space can also be further classified as a: Class A, Class B & Class C
- Class A: This represents premium properties.
- Class B: This represents old buildings usually targeted by investors for renovations.
- Class C: This class of properties is usually old and requires a big amount of maintenance. The average age of a class C property is 20 years.
3. Multi-family rental
4. Industrial space
WHAT ARE COMMERCIAL LEASES?
Most business enterprises own the buildings they occupy. However, more often most commercial properties are leased for business. Investors of these buildings serve as landlords and take rent from the businesses that operate there.
Commercial properties are leased out for an average of 10years or more. In a research conducted by a real estate market analyst firm CBRE Group, it was discovered that tenants of a commercial real estate property would rather enter long-term lease agreements to lock in prices in a rising market environment. Tenants who rent out large spaces such as warehouses also like to keep the space for long periods of time. This is because of the limited availability of properties that match their needs.