Commercial property is also known as investment or income property. These kinds of buildings are made to generate income. This can be done either by renting them out or by generating a profit by doing some business in the building. The main types of commercial properties include office buildings, medical centres, hotels, farm land, warehouses and garages. In many cases, the residential complexes which have more than a certain number of units also qualify as commercial property for tax and borrowing purposes.
The cash inflows for such properties can be in the form of fees, parking fees, proceeds from sales taking place in the property, tax credits and tax benefits. The cash outflows in such properties take place in the form of expenses, debt, costs upon sale and other similar expenses. A commercial property could be a high rise building or a small apartment which has been rented out to a company or individual. Land is also a form of commercial property which can be rented out to an individual for earning purposes. Some of the broad categories under which these buildings fall include leisure, retail, industrial, office, health care and multifamily.