The Main Types of Commercial Real Estate Properties

Commercial real estate is property that is used solely for business purposes. It encompasses a wide range of different property types beyond just office buildings. As an investor or business owner, it's important to understand the various classes of commercial real estate. Here are the main categories:

• Office Buildings

One of the most common types of commercial properties, office buildings provide workspace for businesses. This can include high-rise office towers, low-rise office parks, and everything in between. Offices are typically leased out to tenants on a square-footage basis.

• Retail Properties

Retail properties are commercial buildings that house stores, restaurants, entertainment venues and other businesses that provide consumer goods and services. Examples include shopping malls, strip malls, grocery stores, car dealerships, and freestanding retail buildings.

• Industrial Properties

Industrial real estate includes properties like warehouses, distribution centers, manufacturing plants, storage facilities, data centers and flex spaces. These are typically large buildings designed for processing, production, assembly and logistics operations.

• Multifamily Properties

Multifamily properties contain residential units within a single building or group of buildings - such as apartment complexes, high-rise condos and sometimes townhomes. While residential in nature, multifamily housing with over 4 units is considered a commercial real estate asset class.

• Special Purpose Properties

There are also various special-purpose commercial properties like hotels, resorts, casinos, theaters, healthcare facilities like hospitals and medical offices, self-storage facilities, automotive properties like truck stops, data centers, and more. These unique properties often have very specialized design requirements.

• Land

In addition to buildings themselves, undeveloped land that is zoned for commercial use is also considered a commercial real estate asset. Land can be acquired and developed into income-producing commercial properties.

Commercial real estate investors, developers, brokers and businesses need to evaluate the pros and cons of each property type based on factors like location, demand drivers, income potential and operational requirements. The right commercial real estate can be critical to business operations and investment returns.

If you are looking for commercial properties, contact the experts at North Star Commercial Real Estate Advisors. Their experienced brokers can help you find the perfect property for your business needs or investment goals. Visit our Contact Page to get started.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or investment advice. It is always recommended to consult with a qualified financial advisor or investment professional before making any investment decisions.

Scott Naasz

Founder and President Broker

North Star Commercial Real Estate Advisors Keller Williams Preferred Realty