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Different Types of Commercial Real Estate Property
The Commercial real estate
can be broken into different
types and each type can be
further divided into
subdivisions.
And without proper
knowledge, it would be
challenging to choose the
commercial property that
suits your interest as well as
a particular location.
The following section throws
light on the different types of
commercial property and
their subcategories.
Office space
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
Class A buildings are the
best because they are
often newer buildings
with state-of-the-art
infrastructure.
Class A
Class B buildings have the
potential for a high return
on investment through
renovation and
improvements.
Class B
Class C buildings are
older, poorly located, and
often in need of extensive
renovation and updates
to out-of-date
infrastructure.
Class C
Industrial buildings
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
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
These buildings are mostly
used for assembling of
goods that are in the last
phase of production.
Light assembly
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
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
Retail Buildings
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
A strip center is a retail
building where many small
businesses of different types
are located and that includes
an anchor tenant.
Strip centers
Malls are the largest retail
building that can occupy a
space of between 400,000 to
2,000,000 square feet.
Regional malls
Community retail centers are
normally in the range of
150,000-350,000 square feet
and multiple anchors occupy
community centers.
Community retail
centers
Land
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
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
These are land parcels in the
midst of big towns that are
developed but vacant.
Infill land
This is a piece of land where
an industry was previously
built but has been vacated.
Brownfield land
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.
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Different types of Commercial Real Estate Property

  • 1. Different Types of Commercial Real Estate Property
  • 2. The Commercial real estate can be broken into different types and each type can be further divided into subdivisions.
  • 3. And without proper knowledge, it would be challenging to choose the commercial property that suits your interest as well as a particular location.
  • 4. The following section throws light on the different types of commercial property and their subcategories.
  • 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
  • 21. Land
  • 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.