When you hear the words ‘commercial real estate’, what actually comes to mind? Perhaps you think of towering skyscrapers, warehouses and even those fancy shopping centres all around town. Well, these properties have all the right to be classified under commercial real estate but beyond this however, there are more precise or specific types that you can consider most especially if you are thinking of investing in one. Here are some of the most popular types for you to take note of.
Office commercial real estate
The basic classification for office commercial real estate falls into three categories. One is the Class A office or one which is categorised us such for being the best in terms of its location and construction. The next one is Class B which may be constructed with the best materials but are not found in a desirable location. All other office properties that do not fall into the first two categories are classified under Class C office commercial real estate.
Some other office buildings can be classified further into those found in the suburban or the central business district. Those suburban office buildings basically are midrise structures whilst those in the central business district include high-rises and are basically found at the heart of a certain city.
Industrial commercial real estate
Apart from office building classifications, there are also industrial properties categorised under commercial real estate. Some properties in this regard are called flex warehouses or those properties that can be converted into a space mixing bot office and industrial characteristics into the space. Bulk warehouses also exist. These ones stand on a large commercial space and are often used for the purpose of distributing products on a large scale basis. This often requires easy access to highway systems.
Then there are heavy manufacturing facilities where the largest manufacturers can be categorised. Typically, these ones are filled with manufacturing facilities and are often substantially renovated depending on the purpose of the tenant. Lastly, there are light assembly commercial real estate properties whose structures are simpler when compared to heavy manufacturing facilities. They include office space, product assembly space and storage space.
Retail commercial real estate
These properties are sub-classified to many different types. There are strip centers that mix a variety of small retail stores under one roof. It combines diners, shoe shops, spas and salons and all other stalls where you can get all the products and services that you want. Then there are community retail centres which are typically larger than those of strip centres. You can find grocery stores or even drug stores in these retail properties too. There are also power centres where there are some major retailers under one roof but are smaller than that of the community retail center. Do not forget that there are even larger retail stores like regional malls.
Apartments or multifamily properties
Yes, these are also considered commercial real estate properties. Under this are garden, midrise as well as high-rise apartments. Garden apartments are those housed in three- to four-storey buildings and usually include about 50 units. There are no elevators to such type of apartment but they do have surface parking. Midrise apartments, on the other hand, are taller than those garden apartments and commonly contains up to as much as 110 units with an elevator service. Meanwhile, high-rise apartments are properties managed by professionals and commonly have more than a hundred units in one tall structure.
These commercial real estate properties include different varieties. One type is the full service hotel that includes all the services that you need and are typically ideal for those looking for luxury. The limited service hotel, another type, is one which is more known as a boutique property. It is smaller than full-service hotels and may lack services like room service or even restaurants. For families looking for a place where they can stay a week or more, the extended-stay hotel is an ideal choice. This place has spacious rooms and also has a small kitchen in it.
Last amongst the list of commercial real estate properties is the land property. This one is classified depending on its purpose. There is the greenfield type, usually underdeveloped and is used for faming or pasture. Then there is the developed vacant property otherwise known as infill land. Brownfield lands also exist. These ones where already used either for commercial or industrial purposes and can now be used for another purpose.
As you have seen, there are a lot of different types of commercial real estate properties for you to choose from. The purpose of one definitely differs from that of the other. You may want to learn more about commercial real estate in Toronto if you are looking to invest for your growing business.