Commercial Investment

AAA

DEFINITION of 'Commercial Investment'

An investment in a for-profit enterprise involved in the buying and/or selling of goods and/or services that is expected to generate cash flow. A commercial investment can be assumed by an individual, group or institution. Frequently, a commercial investment is shared by a group of investors combining assets in order to fund the investment.


INVESTOPEDIA EXPLAINS 'Commercial Investment'

A commercial investment occurs where an investor commits money or capital to purchase, either entirely or a percentage of, a for-profit property or business. Examples of commercial investments include different types of real estate properties, such as apartment complexes, hotels or industrial complexes.

RELATED TERMS
  1. Operating Cash Flow - OCF

    In accounting, a measure of the amount of cash generated by a ...
  2. Commercial Loan

    A debt-based funding arrangement that a business can set up with ...
  3. Real Estate Operating Company - ...

    A company that invests in real estate and whose shares trade ...
  4. Asset

    1. A resource with economic value that an individual, corporation ...
  5. Commercial Real Estate

    Property that is used solely for business purposes. Examples ...
  6. Investment Real Estate

    Real estate that generates income or is otherwise intended for ...
RELATED FAQS
  1. What are the primary differences between a closed end investment and an open end ...

    The primary differences between closed-end funds and open-end funds lie in how they are structured and how they are bought ... Read Full Answer >>
  2. What criteria does a property need to meet to be considered an 'investment grade' ...

    A property is considered to be investment, or institutional, grade if it attracts the attention of large institutional buyers, ... Read Full Answer >>
  3. What are the most common leveraged ETFs that track the drugs sector?

    The most common leveraged exchange-traded funds (ETFs) that track the pharmaceutical industry are the two offered by Proshares: ... Read Full Answer >>
  4. What is required to become an accredited investor in a private placement?

    The term "accredited investors" is defined by the U.S. Securities and Exchange Commission (SEC) as individuals with a net ... Read Full Answer >>
  5. Why should you invest in tangible assets?

    Savers who deliberately buy tangible assets for investment purposes value their tangible goods as a form of value diversification ... Read Full Answer >>
  6. How much of the asset management industry has moved from traditional managers to ...

    While the exact numbers are difficult to calculate due to variations in measurement and the overall growth of the asset management ... Read Full Answer >>
Related Articles
  1. Insurance

    The Rise Of The Modern Investment Bank

    Get to know a little bit about the institutions whose actions help to guide free markets.
  2. Entrepreneurship

    Prepare To Sell Your Business

    Follow these tips to ensure you get the most out of your hard work.
  3. Personal Finance

    Real Estate Speculation In College Towns

    Is this an investing option you should consider? Find out here.
  4. Home & Auto

    7 Steps To A Hot Commercial Real Estate Deal

    For savvy real estate investors, times of lower prices reveal investment opportunity.
  5. Entrepreneurship

    Find Fortune In Commercial Real Estate

    Investing in big buildings means big money - and bigger risks.
  6. Options & Futures

    Defeasance Reduces Commercial Real Estate Fees

    Try this alternative to short-term variable-rate financing when using leverage to buy property.
  7. Forex

    10 Cities Leading Bitcoin Adoption

    An overview of the global cities leading the way in using the virtual currency Bitcoin.
  8. Forex

    Beware of these Five Bitcoin Scams

    We look at five bitcoin scams and how to protect yourself from fraud.
  9. Investing

    REITs 101: How They're Regulated

    Here's everything you need to know about REITs in less than five minutes.
  10. Professionals

    Real Estate Advice for Recent Retirees

    What retirees need to consider when it come to making real estate decisions.

You May Also Like

Hot Definitions
  1. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  2. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  3. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  4. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  5. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
Trading Center