Different Types of Commercial Real Estate

Over the last few decades commercial real estate has skyrocketed as an attractive asset for all types of people looking to make an investment. Commercial real estate properties vary in categories, but they are all purchased to generate profit with through rental income and/or capital gain. In addition, commercial property refers to either buildings or land, a common misconception amongst the public. From shopping centers to hotels and from office buildings to warehouse facilities, understanding the different kinds of commercial real estate properties is the first step to identifying if investing is right for you or your business.

There is a divergence between the main categories of commercial real estate property. Some say there are four types and some say there are six types, as such we will cover all six to encompass the broadness of each sector. The following are the main categories of commercial real estate properties:

1. Office: office buildings are typically either urban or suburban and make up one of the largest sectors. Urban office buildings are things like high-rise properties and suburban office buildings are things like grouped office parks.
2. Industrial: large manufacturers are usually in this category as things like warehouses and product assembly locations fit here.
3. Retail: retail buildings account for both restaurants and retailers. They can be either shopping centers with multiple retail businesses or big box centers like Best Buy.
4. Hotel: while this is a very broad description to cover variety of different types, the hotel sector represents tourists and traveler establishments.
5. Multi-Family: things like duplexes fall into this category and account for condominiums as well.
6. Land: things like undeveloped land (farms), re-useable land, or infill land (developed land now vacant) are all considered commercial real estate property.

In addition to these six, special purpose commercial real estate exists to account for things that fall outside of the standard sectors. Theme parks, theaters, funeral homes, and self-storage are good examples of special purpose commercial real estate properties. Whether you are a buyer, a seller or a tenant, The Law Office of Brenda Murzyn, P.C. will protect your rights and best interests in the purchase and sale of apartment buildings, office, retail, and industrial space, warehouse and vacant land.