Commercial real estate is a business venture that is rapidly growing in the Kenyan market due to the commercial property which is used to generate profit either from capital gain or rental income. Commercial real estate is not only important to business people but also the government and the country at large. To business people, it provides profits which are use to run and expand the business while it helps the government to earn income through the taxes levied to entrepreneur and finally it helps the economy of the country to grow due to the social amenities and infrastructure build by the government.
Before starting the investing in commercial real estate 3 things must be considered, these are one the location where the commercial real estate will be situated. One should also consider the amount of capital required to start and a business. For example when opening a medical centre or a commercial shop, you must make sure that you have the required capital and also that the raw materials are adequate for the labor, for the investment to be able to succeed.
Commercial real estate have many advantages in it which far out ways the disadvantages found if any, first, the commercial real estate encourages self employment among people, these is just one of the jobs in which you are your own boss. Free from control and intervention of employees. Unlike like those employed, commercial real estate enables business owners to generate more income and even work for long hours and get little pay.
Commercial real estate also has its limitations even through it is a profitable business venture. The main problem is over taxation of business enterprises. The government imposes relatively high taxes to business so as to generate income. This hinders local investors from expanding their business and getting enough profit from the business. Commercial real estate is also on dominated by the government who levy little tax their business, compared to private business owned by local investors. Some of these Commercial businesses also lack the government’s support thus making them to collapse.