What is Commercial Real Estate?

Commercial real estate refers to properties used specifically for business or income-generating purposes.

They are also governed by zoning, where certain types of commercial properties, such as industrial buildings, have to exist within their designated zones.

The Eight types of Commercial real estate include: Office space, Industry space, Multifamily complexes, Retail spaces, Mixed – use spaces, Land, and Special purpose land.

They are also governed by zoning, where certain types of commercial properties, such as industrial buildings, have to exist within their designated zones.

Ways in which  commercial real estate investing transforms communities:

• Increased economic activity: New businesses create jobs and attract investment, which can boost the local economy. This can lead to increased tax revenue for the community, which can be used to fund public services and infrastructure improvements, such as opening a library near a residential neighborhood, combined with co-working spaces.
  A good example is Kenya National Library Service having a branch in BuruBuru, making it easy for students to access learning materials and plan activities around the library, and it also offers co working spaces for freelancers at modest prices.
• Revitalization of neighborhoods: Commercial development can help to revitalize declining neighborhoods by bringing new people and businesses to the area. This can lead to increased property values and a more vibrant community.
• Improved amenities and services: Commercial development can lead to the creation of new amenities and services, such as restaurants, shops, and entertainment venues. This can improve the quality of life for residents and make the community more attractive to businesses and young people.

• Increased tax base: Commercial properties typically generate more tax revenue than residential properties. This can provide a much-needed boost to the community’s tax base, which can be used to fund essential services.
• Preserving Local Character: Commercial development doesn’t have to be homogenized. Renovating historic buildings or incorporating local architectural styles can celebrate the area’s unique character, attracting visitors and fostering a sense of place.
  
  One can even incorporate art centres, such as The GoDown Arts Centre located at Kilimani { main branch is Dunga Road, Industrial Area }  thereby promoting exploration and expression of diverse artistic styles and community engagement while also impacting important lessons and traditions.

• Promoting Social Equity: Commercial real estate projects can be designed with social equity in mind. For example, prioritizing local businesses as tenants or including affordable housing units in the development can ensure everyone benefits from the economic growth.
• Smart Growth and Walkability: Well-planned commercial developments encourage walkable, mixed-use environments. This reduces car dependence, promotes a healthier lifestyle, and creates a more pedestrian-friendly atmosphere.
• Supporting Local Businesses: Commercial spaces like co-working facilities or business incubators can provide a launchpad for startups and small businesses. This fosters innovation and entrepreneurship, contributing to the community’s long-term economic health.
  Also having fitness centres in the mix promotes a healthy culture in the community by introducing positive attributes that the young people can emulate before they are swayed by negative addictions.

Commercial real estate investing goes beyond just financial returns. When done thoughtfully, it can be a powerful tool for community development. By revitalizing under-served areas, fostering social well-being, and promoting sustainable practices, commercial real estate can contribute to the creation of vibrant and thriving communities. Investors who prioritize these positive impacts can build a successful portfolio while leaving a lasting positive mark.