Commercial real estate refers to property, land, or buildings that hold value and are used exclusively for business and professional activities. With a 2023 market valuation of $22.5 trillion, the commercial real estate market is the fourth-largest asset market in the U.S., following equities, residential real estate, and treasury securities. There are reportedly 5.9 million commercial real estate buildings in the U.S. and many industries and business asset classes depend on commercial real estate.
14 Industries That Depend on Commercial Real Estate
Businesses depend on commercial real estate because commercial properties create job opportunities. They contribute to local economies through spending on goods and services and through taxes. They attract additional business ventures, and they benefit neighborhoods by supporting infrastructure and fostering community growth.
Here are 14 industries that depend on commercial real estate:
- Industrial companies including manufacturing, fabrication, commercial printing, distribution, and co-packing.
- Retail businesses including fashion, art & craft companies, furniture, office supplies, home improvement and “hardware” stores, strip malls, and regional malls.
- Hotels and resorts.
- Financial businesses including banks, credit unions, and investment businesses.
- Professional services businesses including accounting firms, marketing and advertising agencies, law firms, HVAC companies, and janitorial companies.
- Entertainment enterprises including bowling alleys, mini golf locations, laser tag facilities, gambling locations, theaters, and escape rooms.
- Food establishments including dine-in restaurants, “fast food” and “fast casual” restaurants, and commercial kitchens.
- Office locations.
- Healthcare facilities.
- Multifamily rental spaces.
- Special purpose enterprises including amusement parks, parking lots, churches, stadiums, and zoos.
- Industrial land.
- Self-storage.
- Life sciences including biotechnology and pharmaceuticals.
Reasons to Invest in Commercial Real Estate
Because so many industries and business classes depend on commercial real estate, investing in commercial real estate has become a highly utilized investing strategy. As business mogul Tamir Sapir put it, “If you’re not going to put money in real estate, where else?” As former U.S. President Theodore Roosevelt stated, “Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.”
The reasons to consider investing in real estate are these: first, it is one of the safest investments that can be made because the investment is secured by the asset itself and rarely do real estate investments lose value. Second, there are many ways to invest in real estate due to the many classes of real estate that are available. Third, there are several ways to achieve value appreciation including realizing natural value increases with the market and updating a property to secure increased rental income. Fourth, real estate investors can take advantage of tax breaks and deductions. Fifth, real estate investors can usually get easy access to loans. Sixth, real estate generally earns investors passive income. Seventh, real estate investments serve as an inflation hedge. Seventh, real estate investments can be passed through generations.
Seek Expert Real Estate Services to Find Your Perfect Location
Caldwell Commercial Real Estate is your trusted partner for Commercial Real Estate in Charleston, SC. We offer leasing and sales, development, and property management services. Our commercial realtors and property managers have extensive experience, so you can rest easy knowing that your needs will be met with superior results and satisfaction.
Recent Comments