Commercial area

A commercial area, commercial district, or commercial zone is a part of a city or neighborhoods primarily composed of commercial buildings, including districts such as downtowns, central business districts, and financial districts, as well as commercial developments such as shopping centers and strip malls. Commercial activity includes the buying and selling of goods and services in retail businesses, wholesale buying and selling, financial establishments, and a wide variety of activities that are broadly classified as business activities." Although commercial land often occupies a smaller share of urban land than residential areas, they are extremely important to a community's economy. They provide employment, facilitate economic activity and the flow of goods, services, and capital, and often serve many other roles important to the community, such as public gathering and cultural events.

A commercial area is real estate intended for use by for-profit businesses, such as office complexes, shopping malls, service stations, bars and restaurants. It may be purchased outright by a developer for future projects or leased through a real estate broker. This type of property falls somewhere between residential and industrial property. Practically every incomer must grant permission to build a new office complex or other profit-making business, the city government must determine that the chosen area is indeed commercial area. If the zones which separate commercial, industrial, and residential area are clearly zoned for commercial use, the city will allow the sale to proceed for the stated use. If any part of the property extends into a residential or industrial zone, however, then the buyer must seek a 'variance', special permission to cross over a zone boundary.

A commercial area can be held by real estate agents who treat it the same as residential areas. Signs advertising the availability and size of the real estate can be erected, and arrangements can be made to buy or lease smaller lots. Sellers may also agree to make improvements to the land, such as grading off uneven spots or clearing out unwanted trees. A professional developer may purchase huge swatches of this type of property simply to guarantee its availability for later projects.