What are the Different Types of Commercial Real Estate?
Commercial real estate is broad and has an extensive line of properties under its wing. The common denominator of all these properties is multi-tenancy and the earning possibilities.
Here is a list of the different properties under the Commercial Real Estate category.
A residential property that caters to more than one family and the tenants pay a specific amount for lease is a multi-family residential unit. The main takeaway is that the property houses multiple families within a premise. If you are looking into investing in this kind of property, you have the guarantee for income streams. Depending on your arrangement, maintenance is not a hassle, too.
There are different types of multi-family residences, and they vary depending on the number of units.
They are usually located in subdivisions or residential areas. A duplex is a property for two. They have separate entrances, own lawns, and are the same size. Most often, multi-family units have the same design, too. The same goes with a triplex, but it caters to three families or three different sets of tenants.
Apartment complexes vary from mid-rise to high rise. Mid-rise apartment buildings have more or less 11 stories, while the high rise has 12 or more stories. The units can be a studio type or with 2-3 bedrooms. The number of units ranges from more than 30 to a hundred. So if you have one, your income is secured. Most complexes have elevator services and amenities like a gym, or an indoor pool, playground, sports center, and of course, ample parking space. There may even be retail establishments on the ground floor. It all depends on the developer.
These housing facilities are close to universities and colleges because they cater specifically to students. As the name suggests, the objective is to provide safe and decent residence to students who live away from their homes. There are student accommodations privately owned by the developer or the university. Those managed by the school have specific sets of regulations that are not as flexible as off-campus housing facilities. On-campus and off-campus housing have common areas for their residents. Amenities include high-speed wireless internet, laundry services, and food concessionaires.
Assisted Living or Senior Community
This type of housing is dedicated to the ageing community. Properties of this type are usually a single story to ensure accessibility, especially for residents who require movement assistance. Amenities may include food service and medical care units. They have sets of staff that address the senior residents’ medical needs promptly. While there are single units for those who choose to live alone, there are also units for sharing where they can have roommates or housemates. This predicament is dependent on the health of the resident, whether he is capable of living on his own or if he needs routine care or attention. There may even be a designated area where seniors who require immediate and special care can reside.
This property type has several categories, and they are divided into specific classifications.
Office buildings can be as lucrative as other property types, but they require higher capital because redesign is needed to meet the clients’ preferences. The number of tenants is dependent on the location, size, category and class they fall under.
Central Business District
Office buildings located in central business districts are home to high-profile companies such as financial institutions. The office buildings in this area are typically high-rise and have elevator service.
Commercially Zoned Homes
These office buildings were originally residential units. Due to rezoning, residential units were repurposed for commercial use. So from being multi-family, they now become office spaces. These properties have the amenities of a house, meaning it has a kitchen, patios, and the like. Tenants have the option to lease the whole “house” to ensure their privacy and exclusivity.
Medical/ Healthcare Offices
These properties are designed for medical care. The medical field is vast. Your tenant could include dentists, veterinarians, surgeons, name it. As an office building owner, you have to understand that since these offices are specialized, specifications need to be met for your tenants to start operation. But these type of tenants stays longer.
Suburban Office Buildings
These office buildings replicate the suburban way of living. They vary from low to mid-rise buildings. Some have elevators; some have none. Employers and companies pretty much favor these areas because they cost less, are more accessible for their employees, and they adapt greeneries in their premises.
This property type is as broad as the others. It covers a lot of properties and caters to different businesses. Warehouses are the most common properties under this category, and there are also different classifications of warehouses Popular types of warehouses include: Bulk, cold storage, high bay, container terminal, truck terminals and distribution and fulfillment centers.
Establishments that are under this category are those that offer goods and services like restaurants, grocery stores. They are usually located downtown, in the suburbs, or just anywhere where there’s traffic. They are typically found in a commercial property featuring different retail stores, making them accessible. You will see a restaurant beside a beauty salon or a boutique. That’s how a retail building mixes business types for the convenience of its patrons. As an owner, you’ll be dealing with different sets of tenants, and the rental varies depending on the size of the unit.
These are businesses that provide accommodations daily, weekly, or monthly basis. All the classifications of hotels are under this category-from budget to full-service and high-end hotels, including AirBnBs or the Short-term Rentals.
Each commercial property has specifications and potential. When you invest in commercial real estate, the guarantee of yielding high returns is yours, but there are pros and cons. Look into those and assess yourself and your financial capabilities. Don’t hastily jump without doing proper assessment and severe deliberation.
Hi! We’re Josh and Jolene Baijot, the creators of this website. We’re also commercial real estate brokers in Bellingham, Washington. Thank you for taking the time to read this blog post. We appreciate your time spent on this site. You can connect with us on Facebook, Instagram, or contact us through this website.
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