Types of Commercial Real Estate Properties – Richard Josephberg Almorli Advisors
Commercial real estate is defined as any real estate that’s bigger than one house on one lot. So even if people live in the property, it’s still commercial as long as it’s bigger than one house. In essence, commercial properties refer to real estate that is being used for the pursuit of profits. In other words, they are occupied by profit-generating companies. At a high level, when people think of different types of commercial real estate, they typically think about shopping centers, office buildings, or warehouses. But the commercial real estate industry is much more precise when it comes to defining property types. Below Richard Josephberg Almorli Advisors lists the different types of commercial real estate with a description of how each category is typically defined. While official classifications can vary from county to county, generally, commercial real estate can be broken down into five major categories.
Office space is a property that has an area that allows the business activity to take place. Offices are broadly classified into three classes: class A, class B, and class C. These classes are relative depending on context — i.e. the location of the building and health of its surrounding
Industrial properties can also vary quite a bit in size, depending on their specific use-cases. These commercial real estate property types are mostly located on the outskirts of the city. They are also prevalent near roads to allow easy transport of raw materials and products.
The retail market is another investment area that can expand an investor’s portfolio. Retail properties or shopping centers are real property that largely deals with retail. Retail buildings are used to host businesses that involve buying and selling of material goods and services.
Other Types of Commercial Property
Any other nonresidential property including hospitality, self storage units, & medical space such as nursing homes and hospitals.
To summarize, different kinds of property are considered as commercial properties. Therefore, an aspiring real estate investor or developer should first understand the commercial real estate basics to choose the right form of investment. If you’re looking to expand your real estate portfolio, Richard Josephberg Almorli Advisors can help you to choose the most appropriate property from the vast pool of different kinds of real estate.