There are four main categories of commercial real estate: office, retail, industrial, and multi-family. Each commercial property type serves a specific purpose and is intended to generate income and value.
Sometimes there is an overlap between commercial real estate types. For example, a dentist may decide to occupy a space within an office building or retail center.
A city’s largest office buildings are typically located within the central business district, commonly referred to as “Downtown.” Suburban offices are usually smaller buildings. Office buildings may be occupied by single or multiple tenants, depending on the size and concept of the property.
Office buildings are commonly ranked by class: A, B, or C. To learn more about these various tiers, check out our blog.
Retail consists of properties that are used by shops and restaurants. There are multiple types of shopping centers, including regional malls, community centers, strip centers, and power centers. The kind of shopping center is defined by its size, concept, type, number of tenants, and trade area.
Single-tenanted buildings are often occupied by big-box centers like Target and Home Depot, while pad sites remain open for businesses such as banks, restaurants, and other stores.
Industrial buildings are typically located in suburban areas and are often close to major transportation routes for convenient and expedited service. These properties vary greatly in size but are generally large open buildings with minimal office space.
Commercial properties are categorized into four groups:
Multi-family includes all types of residential properties except single-family. These properties consist of apartment buildings, condos, townhomes, and corporate housing. They are six categories:
When leasing a space, it is essential to confirm that the zoning is appropriate for the tenant’s use. Just because a building appears ideal doesn’t guarantee that it is legal to operate a specific business at the location. Always reach out to the appropriate municipality to ensure the building is acceptable and adequately zoned.
If you need help finding the right space for your business or are interested in investing in commercial real estate, contact Evan Meyer today.
