In many cases, the entrepreneur who starts a new venture will have to look for commercial premises to operate the business. The majority of commercial premises will be for agriculture, office, retail, industrial and warehouse.

Agricultural ventures are not just limited to premises like land for vegetables and fruits and traditional livestocks such as cattle and sheep. Premises can also be along the coast or out in the sea for the farming of fishes, shrimps, oysters, lobsters etc. With recent developments, agricultural ventures can even be housed in a high rise building or vertical farming as it is known.  There are also reports of vegetables grown in a clean room for minimal contamination. In general, rents for farming are relatviely the lowest of all commercial properties.

Office premises can be in a highrise building in a city center with built in facilities like air conditioning and/or heating.  They can also be in standalone buildings. In certain countries, offices can be above a retail outlet in a shophouse. Office rents especially for prestigious addresses can be relatively high. However rents for offices outside the city center are more affordable.

Retail premises comes in many forms. They can be a space in a flea market, a stall in a night market, a kiosk, an outlet in a shopping mall or a standalone building. In many countries, the premises can also be a shophouse or half of it in a row of shophouses. Beside retail, these premises can also be used for food and beverage (F&B) business which includes restaurants, cafes, pubs, lounges etc. Rents for retail premises in high traffic areas can be relatively high. In highly desirable shopping districts, the rents can be quite astronomical.

Industrial premises tend to be located in less central areas such as industrial estates as is usually defined by the zoning requirements in developed countries. In certain places, there may be pockets of industrial premises situated within or near residential estates. Industrial premises are usually grouped under heavy and light industries. Heavy industries include businesses like shipyards, steel mills, precision engineering etc. Light industries tend to be in areas like electronics assembly, signboard fabrication, etc. Rental rates for industrial premises are much lower than for retail or office buildings.

Warehousing premises tend to be somewhat similar to induatrial premises in terms of location and rental rates. The major warehousing areas are often situated near ports and airports.

Work Out Costs

Amortization and Depreciation

Cost of Goods Sold

Machinery/Equipment and Furniture