Kinds of Real Estate Commercial Properties

A major commercial property career begins with a clear explanation of commercial property, including the concept of commercial property, why it may be a better investment than residential real estate and the various sorts of commercial properties.

Commercial or Business Property:

A Commercial real estate (CRE) is a property used solely for commercial purposes or to offer a workspace, as opposed to residential real estate, which is utilized for living purposes. The Commercial properties are frequently leased to tenants to conduct income-generating operations. This vast property investment can range from an individual store to a large shopping mall.

A property that can develop revenue through capital appreciation or rental revenue is commercial real estate. An office building, a residential duplex, a restaurant, or a warehouse are all examples of commercial property. It’s a business property if you can profit from renting or retaining it and reselling it.

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Kinds of Commercial Property:

Commercial real estate is divided into several categories. When individuals consider commercial property, they often think of shopping complexes, office towers, or warehouses at a high elevation. When designing property kinds, the commercial property business is far more exact. A list of many commercial property forms is provided below, along with a discussion of how each type is commonly characterized.


Office buildings are divided into two categories: urban and suburban. Skyscrapers and high-rise structures, some of which may be as large as a few million square feet, can be found in urban office buildings. Suburban commercial properties are often lower in size and are occasionally clustered together in office parks.

Many office buildings are built-to-suit and can be multi-tenanted or single-tenanted. They’re divided into three categories. Class A homes are the greatest of all time in production and location, whereas Class B properties may have high-quality construction but are in a less desired location. Those that are deteriorated and in an unsuitable location are classified as Class C.


Industrial assets come in a wide range of sizes and uses, and because of the rise of deliveries, this asset class has exploded in popularity throughout the last economic cycle.  The properties are divided into four categories:

  • Heavy Manufacturing: This is a specific use classification for an industrial property that most large firms would fall into. These properties are sometimes substantially customized with equipment for the end customer and repurposing them for another tenant usually necessitates extensive refurbishment.
  • Light Assembly: These constructions are much easier than the heavy manufacturing qualities mentioned above, and they can usually be altered quickly. Warehousing, item assembly, and office area are all common uses
  • Bulk Warehouse: These homes are typically huge, ranging from 50,000 to 1,000,000 square feet. These assets are frequently utilized for regional product distribution and necessitate good access for trucks entering and leaving highway systems.
  • Flex Warehouse: Flex space is a form of an industrial estate that can be readily changed into a combination of industrial and office areas.


The facilities that house the merchants and restaurants that we patronize are retail. They could be multi-tenant (typically with a lead tenant that drives traffic to the site) or single-use, stand-alone structures. This property type can range from small, stand-alone restaurants to large regional shopping malls.

  • Community Retail Centre: The average size of a community retail complex is 150,000-350,000 square feet. Community centers are home to various anchors, such as grocery and drug stores. In addition, it is customary to have one or more eateries in a neighborhood shopping mall.
  • Shopping Centre: Strip malls are smaller shopping malls that may or may not include anchor businesses. An anchor tenant is a major retail tenant that attracts people to the site.
  • Power Centre: A power center is a shopping center with a significant regional retailer as its anchor. It often has numerous small, inline retail establishments but is defined by a few significant box merchants. Each big-box retailer takes up between 30,000 and 200,000 square feet, and all these shopping malls frequently have numerous out parcels.
  • Regional Mall: Malls often include a few anchor tenants, including retail stores or big-box retailers, and range in size from 400,000 to 2,000,000 square feet.
  • Out Parcel: Out pieces, which are land chunks set off for particular tenants, including fast-food restaurants or banks, are found in most larger retail complexes.


Apartments, condominiums, co-ops, and townhomes are part of the multifamily sector, which contains a wide range of residential properties that aren’t single-family. Multifamily properties, like office buildings, are generally divided into the following categories:

  • High Rise: A building having nine or more stories and at minimum one elevator.
  • Mid Rise: These buildings are usually 5 to 9 stories tall, with 30 to 110 units with elevator service. These are frequently built-in urban infill areas.
  • Garden Style: A single-, two-, or three-story apartment complex in a suburban, rural, or urban environment with a garden-like setting; buildings may or may not have elevators.
  • Special Purpose: A multifamily facility of any style that caters to a certain demographic, such as student housing, elder housing, and subsidized (low-income or special needs) housing.


The hotel industry includes businesses that provide travelers and tourists with lodging, meals, and other services.

  • Extended Stay Hotels Limited-service hotels with fully furnished kitchens and larger rooms for extended stays
  • Limited Service: There is no room service, on-site restaurant, or concierge service.
  • Full Service: Room service is available, and there is an on-site restaurant.

Author Bio

Muhammad Zaeem Khan, a creative writer, ardent to compose fine writings. Having vast experience in writing blogs, articles, descriptions, and in reviewing scriptures. Currently, works as sr. content writer with Sigma Properties & Marketing.