There are a number of Types of Commercial Real Estate:
Below you will find the types of commercial real estate, which is defined as properties that have the potential to generate positive cash flow via net rental come and the potential of capital gains.
Office buildings are generally categorized into two types: urban or suburban. Urban office buildings are found in cities and include skyscrapers and high-rise properties — some may even total as much as a few million square feet in size. Suburban office buildings are usually smaller in stature and sometimes grouped in office parks.
Office buildings can be multi-tenanted or single-tenanted, and many are build-to-suit. They’re also ranked in by following class A, B, and C.
– Class A: Most prestigious buildings competing for premier office users with rents above average for the area. Buildings have high-quality standard finishes, state-of-the-art systems, exceptional accessibility and a definite market presence. High Level of Corporate Presence.
– Class B: Buildings competing for a wide range of users with rents in the average range for the area. Building finishes are fair to good for the area. Building finishes are fair to good for the area and systems are adequate, but the building does not compete with Class A at the same price.
– Class C: Buildings competing for tenants requiring functional space at rents below the average for the area.
Medical office buildings are a specialty sub-sector in this space.
Retail comprises the properties that provide usage for retailers and restaurants we as an example. They can be multi-tenanted (often with an anchor, that serves to drive traffic to the property) or single-use, standalone buildings.
The retail sector is has many categories, as a shopping centre or a shopping mall— for instance, a regional mall, community center, strip center, or out door outlet — many factos, land mass for parking, sq.ft. of the stores, type of business and products being sold, types of tenants and number of tenants.
Single-tenanted buildings you may come across include big box centers like Costco, Canadian Tire, Rona, Home Depot. Various Food Chains like Loblaws and Metro, LCBO or the Beer Store are all examples.
- Industrial or Warehouse
Industrial buildings are used for tenants, and are mostly located outside of urban areas, especially along major transportation routes. These buildings can have a Clearance Height from 14 ft to over 30 ft. Moving product to City Centres. Usually reflected into four types:
– Heavy manufacturing: These buildings are heavily customized to the Tenant’s needs or to the Owner Operator that will house machinery for manufacturers need to operate and produce goods and services.
– Light assembly: These aren’t as customized and may be used for product assembly or storage.
– Bulk warehouse: These properties are usually large and are used as distribution centers.
– Flex industrial: These properties contain a mix of both industrial and office space.
Research and development (R&D) facilities are a specialized type of industrial.
The multifamily sector covers all types of residential real estate outside of single-family, including apartments, condos, co-ops, and townhomes. Like office buildings, multifamily properties are often classified into Class A, Class B and Class C.
Apartment rental buildings, in particular, are split into multiple property types.
– High-rise: A building with nine or more floors and at least one elevator.
– Mid-rise: A multistory building with an elevator, typically in an urban area.
– Garden-style: A one-, two-, or three-story apartment development built in a garden-like setting in a suburban, rural, or urban location; buildings may or may not have elevators
– Walk-up: A four- to six-story building without an elevator.
– Manufactured housing community: A community in which the operator leases ground sites to owners of manufactured homes.
– Special-purpose housing: A multifamily property of any style that targets a particular population segment, including student housing, seniors housing, and subsidized (either low income or special need) housing.
The hotel sector covers establishments providing accommodations, meals, and other services for travelers and tourists. The hotels may be independent (boutique) or chain.
– Limited-service: Does not have room service, or on-site restaurant, or concierge.
– Full-service: Includes room service and has on-site restaurant.
– Boutique: Located in an urban or resort location, has full-service amenities, may not be part of a national chain, with fewer rooms.
– Casino: Has a gaming component, and entertainment
– Extended-stay: Limited-service with fully equipped kitchens in guest rooms and