When we talk about commercial real estate and its type, we usually think of shopping centers, buildings, or warehouses. However, the commercial real estate industry is much more than what we think and when it comes to defining types of commercial real estate properties.
Commercial real estate is defined as the properties that have the potential to generate profit through capital gain or rental income.
Below is the list of common types of commercial real estate properties:
1. Office Buildings
Office buildings are usually divided into two sections, urban and suburban properties. Office spaces also differ by single, multi-tenanted, or build-to-suit lease. Urban properties are a high-rise property that is found in the downtown area, and whereas suburban is mid-rise structures, located outside the city.
Traditional office space is classified as A, B, or C.
Class A: These buildings are considered to the prestigious buildings in the commercial real estate market. Class A buildings are located in prime locations and have the most modern amenities.
Class B: In this class, offices are nice but have old construction, but still have proper quality management.
Class C: This one is the lowest classification of office spaces and buildings. Building structures are older and located in less desirable areas. These types of properties need extensive renovation and repairs.
2. Industrial Properties
Industrial properties include manufacturing facilities, distribution centers, warehouses, and research and development spaces. Assembling and improve properties that are work to-suit structures are hard to reoccupy without broad changes, while stockrooms and dissemination focuses can be progressively nonexclusive structures.
Modern properties are typically situated along with significant transportation courses outside of urban zones.
3. Retail Centers
Retail Centers are basically for a lease intended for shopping centers, grocery stores, strip malls (contains a mix of small retail stores), restaurants, and regional outlet malls. Retail spaces can be multi-tenanted or single or stand-alone buildings.
4. Multifamily Complex
The multifamily complex is more significant than a building that consists of four sperate apartments, which include apartment complex, downtime high-rise apartment, and condos.
Multifamily is also divided into four different classes,
Class A: This class includes luxurious apartments with top amenities, including swimming pools, saunas, cafes, and gym. Located in a desirable area and is aged between 10 years or less.
Class B: This type of property is usually 10 to 25 years old. Class B apartments have lower rental rates compare to Class A but are well maintained.
Class C: This class of apartments are usually 20 years old and located in non-desirable areas. They need maintenance and renovation by construction services and have a lower rental rate than Class A&B.
Class D: This type of apartments are 30 years old and maybe significantly worn due to high turnover.
5. Commercial Land
Commercial land is the raw or undeveloped land, or a subdivided area, or any plot of land which is intended for business purposes.
This can include warehouses, parking lots, and other profit-generating businesses. The price of the commercial land varies based on its location, existing business, or adjacent business to it and the size of it.
The above mentioned commercial real estate categories cover all the information about the different types of commercial real estate properties. However, many commercial property management companies build their types of commercial real estate for special and specific purposes.
Let Horizon Resources Inc. help you find the perfect location for your office
When it comes to investing in commercial real estate in San Diego County, Horizon Resources Inc. is a call away; they have an experience of more than 40+ years in commercial real estate management. We have a specialization in providing property management, leasing, development, consulting, and construction management services to property owners throughout San Diego County.
Claim our complimentary property management consultation, call us at: (760) 692-5205 or visit: https://www.horizonresourcesinc.com/
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