The commercial real estate is a very vast sector consisting of various types of properties. If you are looking forward to investing in the commercial real estate sector, then it is imperative for you to know in detail about the various types of commercial properties. This will help you in identifying the type of property which is best suited for your investment. Go through the slide to know about the different types of commercial real estate properties.
6. Commercial real estate office
properties include single-tenant
buildings, small professional
buildings, skyscrapers, and
everything in between. Buildings
are classified into three categories:
Class A
Class B
Class C
7. Class A buildings are the
best because they are
often newer buildings
with state-of-the-art
infrastructure.
Class A
8. Class B buildings have the
potential for a high return
on investment through
renovation and
improvements.
Class B
9. Class C buildings are
older, poorly located, and
often in need of extensive
renovation and updates
to out-of-date
infrastructure.
Class C
11. These commercial real estate
property types are mostly located
on the outskirts of the city.
The industrial buildings are
subdivided into four major
categories which are discussed
below.
Heavy manufacturing
Light assembly
Flex warehouse
Bulk warehouse
12. This type is used by
companies that engage in
the production of industrial
goods and is constructed
using different designs
depending on the
requirements of the tenant.
Heavy manufacturing
13. These buildings are mostly
used for assembling of
goods that are in the last
phase of production.
Light assembly
14. These buildings can be used
for light assembly purposes
as well as office work and
can also be easily
partitioned to serve both
purposes simultaneously.
Flex warehouse
15. Most of the bulk warehouses
are used primarily for storage
of goods and the buildings
are always near roads to
enable easy distribution of
the goods.
Bulk warehouse
17. Retail buildings are used to host
businesses that involve buying
and selling of material goods
and services. The different
types of retail buildings include:
Strip centers
Regional malls
Community retail centers
18. A strip center is a retail
building where many small
businesses of different types
are located and that includes
an anchor tenant.
Strip centers
19. Malls are the largest retail
building that can occupy a
space of between 400,000 to
2,000,000 square feet.
Regional malls
20. Community retail centers are
normally in the range of
150,000-350,000 square feet
and multiple anchors occupy
community centers.
Community retail
centers
22. A piece of land is one of the
essential commercial real estate
basics since all property is built
on solid ground. Different kinds
of real estate property under
this category include:
Greenfield land
Infill land
Brownfield land
23. This kind of land is found in a
rural setting and is mainly an
undeveloped land that has
grazing pastures or a farm.
Greenfield land
24. These are land parcels in the
midst of big towns that are
developed but vacant.
Infill land
25. This is a piece of land where
an industry was previously
built but has been vacated.
Brownfield land
26. Bottom line Therefore, an aspiring real estate
investor should first understand the
commercial real estate basics in order
to choose the right form of
investment.