What Is Commercial Property and How Is It Different from Residential

Commercial property refers to real estate used mainly for business activities such as offices, shops, warehouses, and industrial sites, while residential property is designed for people to live in, like houses, apartments, or townhouses. The key difference lies in purpose and usage—commercial properties generate income through business operations or rent, whereas residential properties provide living spaces. Commercial properties often involve longer leases, higher rental yields, and more complex legal and financial agreements compared to residential ones. On the other hand, residential investments usually have shorter lease terms, are easier to finance, and attract a broader pool of tenants. Understanding these distinctions helps investors choose the right property type to match their financial goals and risk tolerance.

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