(Texas Patio Builder) What Is Commercial Real Estate


There is a reason that residential and commercial real estate are kept separate. The commercial real estate is strictly for businesses such as hotels, apartments, offices, or shopping spaces. When it comes to purchasing commercial real estate there are a few key things you should keep in mind.

What Is Commercial Real Estate?

  • Disclosure laws: Disclosure laws and requirements vary from state to state. Federal law dictates that commercial property owners must disclose any information about asbestos or lead paint with regards to public safety. Anyone selling commercial property also needs to disclose any major defects to the property that impact the value. When it comes to these defects, however, the definition varies from state to state, so you need to check with your specific state laws before looking to purchase.
  • Land development: Any commercial builder needs to be familiar with all land development protocol especially municipal approvals, master planning, land acquisition, and site evaluation.
  • Foreclosure: Foreclosure proceedings for commercial developments are different than those for residential properties because of the loan terms. Commercial properties generate income (rent) which is given to an ender when there is a default. Then a judge appoints an independent receiver to manage the collection of rent pending the sale of the property.
  • Zoning laws: Zoning laws are used to regulate the type of development that is allowed on any particular piece of land. Zoning laws are put into place to maintain balance and safety for the community. These laws in general divide the land for residential, historical, industrial, commercial, and agricultural use.


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