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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.
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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.
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 Class A buildings are the best because they are often newer buildings with state-of-the-art infrastructure.
Class B Class B buildings have the potential for a high return on investment through renovation and improvements.
Class C Class C buildings are older, poorly located, and often in need of extensive renovation and updates to out-of-date infrastructure.
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
Heavy manufacturing 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.
Light assembly These buildings are mostly used for assembling of goods that are in the last phase of production.
Flex warehouse 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.
Bulk 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.
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
Strip centers A strip center is a retail building where many small businesses of different types are located and that includes an anchor tenant.
Regional malls Malls are the largest retail building that can occupy a space of between 400,000 to 2,000,000 square feet.
Community retail centers Community retail centers are normally in the range of 150,000-350,000 square feet and multiple anchors occupy community centers.
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
Greenfield land This kind of land is found in a rural setting and is mainly an undeveloped land that has grazing pastures or a farm.
Infill land These are land parcels in the midst of big towns that are developed but vacant.
Brownfield land This is a piece of land where an industry was previously built but has been vacated.
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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