Commercial Real Estate
Also known as CRE
Commercial real estate is property held to produce income: offices, shops, warehouses, data centres and similar assets let to business tenants.
Why It Matters
Values depend on rent, lease length and the yield investors require, so a change in interest rates repriced the whole sector without any tenant moving.
Related Terms
- Cap RateA capitalisation rate is a property's net operating income divided by its value, expressed as a percentage: the unlevered yield the building produces.
- NOINet operating income is the rental income of a property after operating costs, before financing and tax.
- Office MarketThe office market is the letting and ownership of workplace property, priced by rent, lease length and the quality and location of the building.
- Industrial Real EstateIndustrial real estate is property used for manufacturing, storage and distribution, from factories to large warehouses.
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