What does commercial real estate include?

Bian Xiao believes that everyone knows that commercial real estate, as commercial real estate, is also called store real estate. It is different from residential real estate with residential function and industrial real estate with industrial production function. So specifically, what does commercial real estate include? Let's talk about it for everyone.

What is the definition of commercial real estate?

Broadly speaking, commercial real estate generally refers to real estate methods used for various business purposes such as retail, wholesale, catering, entertainment, fitness and leisure, which are different from ordinary real estate methods such as houses, apartments and villas in terms of business methods, functions and uses. Real estate with business as its main purpose belongs to the field of commercial real estate and can also be listed separately. The commonly used vocabulary abroad is the concept of retail real estate. It generally refers to the real estate method used by the retail industry, which is a narrow sense of commercial real estate.

What does commercial real estate include?

Commercial real estate planning is also large and small. Large commercial real estate projects can reach hundreds of thousands and millions of square meters, while small commercial real estate projects are only a few hundred square meters or even smaller. Regarding the planning of giant commercial real estate, the overall development of the developer is mostly selected for its operation, and the method of collecting rent as the way of capital contribution repayment is the first; Commercial real estate projects can be packaged and listed, which constitutes commercial real estate finance.

As far as small-scale commercial real estate is concerned, most projects still adopt the way of rent recovery. However, many domestic commercial real estate projects, such as houses, apartments and office buildings, as well as various commercial streets and products, are sold by shops and operated sporadically. This method has great problems in the later operation, so we need to be cautious in the investment time.

How does commercial real estate work?

The main reason is that we gradually agree that "only rent is not for sale", which generally forms an independent production shop after the completion of the property to promote planning rights and generally attract investment and cooperation, and rent is the main source of income. What is the intention? However, after the formation of property rights, the property enters capital sales through commercial operation and packaging, and obtains excellent financing. Generally speaking, this kind of financial sales has repeated financing. The first one on the list is generally the pawn financing of the bank we are talking about; The second economic evaluation meeting is the financing we talked about, such as foundations and credit certificates. After the future value is continuously packaged, the financing is continuously shortened. This is the first method.

The second method is "selling", which is the most primitive method of commercial real estate. With the gradual popularization of commercial real estate, pure sales are no longer suitable for the development of commercial real estate. Because commercial real estate has the characteristics of "high total price, high profit rate and development risk, long payback period", very few investors can buy commercial real estate in full. Even if they can buy it, rational investors will not keep a lot of money on projects with such a long payback period. This makes developers inevitably face a dilemma when developing commercial real estate. One difficulty is that when the developed commercial real estate is used for overall sales, it is difficult to find a buyer and the development funds cannot be recovered; The second difficulty is that when operating on its own, it has to bear huge financial pressure because of the long payback period, and it can't recover funds quickly and invest them in other intentional development, thus affecting the overall operation. In order to cope with their own difficulties, developers have to find ways to innovate in development and operation methods. Therefore, most high-grade office buildings choose to enter the market by paying equal attention to renting and selling.

The third type is called "combination of renting and selling", in which investors and developers usually rent some properties during this period; On the other hand, there are two sales methods. One way is to sell at the bottom. The most typical one is Dalian Wanda, which keeps the first floor, the second floor and the third floor and sells them to Wal-Mart. In fact, Dalian Wanda has tasted a lot of sweetness. The selling price of that floor is generally two to three times the selling price, and the highest floor is sold to 19. 1 10,000 square meters. Wal-Mart's head office has played a very important role. I believe this effect is "procrastination". This "procrastination" practice has been deceived very well. In order to increase the value of Wal-Mart, it is the main store, and perhaps long-term repayment has played a decisive role. Why is the rental and sale combined into one? Most of them are forced by financial pressure, and some of them are cashed out after selling, and the rented part also leaves a way out for later fund financing. This is a comparison between residential real estate and commercial real estate development methods.

Typical forms of commercial real estate

In the first category, we call it "Wal-Mart" method, which is a typical "Wanda" method in the industry. This method imitates the large-scale planning of different urban suburbs, and the policy is extremely accurate for customers. It is basically built around urban white-collar workers and some young people, and the system has also taken compulsory control and developed in the suburbs in a planned way. Like Wal-Mart, Wal-Mart is the largest chain store in the world. Vanke, as a representative enterprise of housing, adopts this method, which is the first category.

The second category is called department store law. Speaking of the department store law, that is, all kinds of products are produced in the same area, and the products are diversified. Just like the high, medium and low-grade products of a department store, everything is displayed on the whole plate, including merchants, office buildings, houses, hotels and apartments. There are many ways in this department store. Generally, there was an urban construction system in the past, and every city had an urban construction system, which was transformed into a development company.

The third category is what we call fine products. This method, like Vantone, has been desperately promoting this "American method". What should it do first? I mainly deal in a small number of high-end sales of fine products. Like us, I may sell three Rolls Royce cars a day, but my total turnover and profit are the highest, so I take the high-end road.

After reading Bian Xiao's introduction about what commercial real estate includes, if you have money, do you want to know what commercial real estate includes and decide your own investment?