Question

Three types of market rental for spaces: residential, industrial and commercial rentals.

What's the difference and similarities of them?

Answer 1

Difference between three Types of market rentals residential, commercial and industrial.
Industrial property is typically used for production, and warehousing purposes. It is where the industrial goods are being produced. WhereAs commercial property is where consumer goods are sold, it is a place which is frequently visited by public. It usually consists of retail shop, restaurants and offices. More the number of consumer footfalls better would be the business. And residential property is used for the purpose of individuals to reside in or for investment purposes.

Tax rate is much higher in commercial and industrial property when compared to residential property. Finding the tenant for industrial property is much harder than finding the tenant for commercial property. financial success of commercial property is generally dependent on Economy. For example search tenants face lost during recession as the consumer spending reduces unable to avail services provided by commercial tenant.

Commercial properties have higher Returns over 5 to 10 year duration compared to residential properties but commercial properties prices tend to be more volatile and depends on the industry to which the businesses is linked. The rental yields for residential properties ranges from 2% to 3% where and rentals for commercial property is almost double up to 5%. The banks will let you borrow up to 10% more if you intend to purchase a commercial instead of a residential property