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Commercial Vs. Industrial Properties - What’s The Difference? 


If you're in the market for a new property, it's important to understand the difference between commercial and industrial property. While they may seem similar at first glance, some key distinctions can make or break your business.

What is the Difference Between Industrial and Commercial Real Estate? 

Before we jump into the nitty-gritty of “what's the difference between industrial property and commercial property?”, let's first define each term to ensure we're on the same page regarding the differences between industrial and commercial.

What is Industrial Property?

Industrial properties are often large warehouses or factories used for storing, producing, or distributing goods. They may also have office space for administrative purposes.

 

They are usually located in areas unsuitable for residential or commercial development due to noise, air pollution, or other concerns. As a result, these properties are often larger and less expensive than other property types.

 

Industrial properties typically have the following characteristics:


  • Have high ceilings and few windows.
  • Have loading docks or other special features for shipping and receiving.
  • May be located in an industrial area or near highways for easy access to transportation. 

However, they may also be located in more remote areas, making them less convenient for employees or customers. When considering an industrial property, it is crucial to consider the location and accessibility in addition to its size and price.

 

What is Industrial Real Estate? 


Industrial real estate, in general, refers to the sale, lease, or use of industrial property. This can include office buildings, warehouses, factories, and other types of properties used for business or manufacturing purposes. Because there is such a wide variety of industrial properties, the term can also encompass various business activities.

 

For example, an industrial property might be used for:


  • Storage
  • Production
  • Distribution
  • Transportation
  • Research & Development (R&D)

Owner-occupied industrial properties are typically used for storage, production, or distribution. These types of properties are often located in more remote areas, away from residential and commercial development.

 

In contrast, investor-owned industrial properties are usually leased to tenants who use the property for various purposes. These properties tend to be located in more developed areas, near other businesses and transportation.

What is Commercial Property? 

Commercial property is zoned for offices, retail, or mixed-use. These properties can be office buildings alone or mixed with shops on the ground floor. 

It can also include:


  • Restaurants
  • Banks
  • Gas stations
  • Malls
  • Shopping center

Commercial properties are usually located in central areas that are convenient for customers or clients. This means they are often close to residential areas, public transportation, other businesses and services. As a result, these properties tend to be more expensive than industrial properties.



What is Commercial Real Estate? 


Commercial real estate refers to properties used for business-related purposes or to provide a workspace for retail operations. Most often, commercial real estate is leased to tenants to conduct income-generating activities. This broad category of real estate can include everything from a single storefront to a huge shopping center.

Commercial real estate can be anything from an office building to a shop, a restaurant or a coffee shop. Individuals, companies, and corporate interests can make money from commercial real estate by leasing it out, or holding it and reselling it.

Commercial real estate is critical for companies looking for modern offices with big space for their operations and their staff. Furthermore, it is equally important for shop owners looking for retail space. An important factor to consider is whether the commercial property offers parking space for company employees, business clients and retail customers.  


What’s a Better Investment, Commercial or Industrial Properties?


What's the difference between industrial and commercial property? What's better for investment - commercial or industrial property? These are common questions for those looking to invest in real estate.

 

The answer depends on various factors, including the property's location, the type of business, and the investor’s goals.

 

For example, if your objective is to make money by leasing, an industrial property may be a better investment. These properties are frequently found in more developed regions, which makes them more appealing to potential tenants. They're also less expensive than commercial buildings, making them a fantastic fit for investors on a tight budget.

 

If you are looking to generate income from sales, then a commercial property might be a better investment. These properties are often situated in desirable locations, which makes them more appealing to customers. They also tend to be pricier than industrial properties, making them ideal for investors with extra money to spend.

 

It is tough to choose between commercial and industrial properties. It comes down to personal preference with many variables at play. What's best for each investor varies depending on their unique circumstance. That being said, here are some key factors to consider before making your decision over commercial Vs. industrial properties:


  • What is the purpose of the investment?
  • What are your financial goals?
  • What is the location of the property?
  • What type of business will be conducted on the property?

 

For investors interested in buying commercial or industrial properties in Cyprus, GoGordian Real Estate has a portfolio of top property listings across all cities of the island. Check our website for the best properties for sale in Cyprus or call us today at 77 77 56 56!