Commercial property refers to real estate used for business purposes, including retail stores, offices, hotels, restaurants, and service businesses. For property tax purposes, commercial properties are typically assessed and taxed differently than residential properties, often at higher rates. Commercial assessment considers factors like income-generating potential, comparable sales, and property characteristics. The commercial tax base is important to municipal finances—healthy commercial sectors contribute significant tax revenue. Commercial property values and vacancy rates are indicators of local economic health. Zoning bylaws designate where commercial uses are permitted, separating them from residential areas in traditional planning or allowing mixing in some newer approaches.