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6 Types of Commercial Properties | Beginner’s Guide

Commercial properties refer to properties that are primarily used for conducting business activities, such as retail, office spaces, and restaurants. These properties are typically utilized for commercial purposes rather than industrial processes. Due to the nature of these activities, commercial properties often require ample space to accommodate customers, inventory, and equipment.

Given the limited availability of space in densely populated areas, commercial properties are commonly situated away from highly urbanized regions. However, they are strategically positioned near major roads and highways to ensure convenient access and visibility for potential customers.

Unlike industrial real estate, commercial properties cater to a diverse range of businesses that may not involve heavy machinery or specialized manufacturing processes. Instead, they focus on providing suitable environments for various commercial operations, emphasizing factors such as aesthetics, customer appeal, and functional layouts.

Retail

These are commercial properties you are most familiar with. Commercial spaces are everywhere and are frequented by people the most. Just like office spaces, they can both be single and multi-tenanted depending on the companies and brands employing the use of the commercial space.

Commercial spaces can be a bit complicated because there are many different types and subtypes when it comes to their classification. A shopping center can be called a “regional mall,” “community center,” or a “power center” depending on its given size, concept, number of tenants, and retail trade area.

Multifamily

Multifamily properties cover all the different kinds of residential spaces outside of a single-family detached home. This includes apartments, condominiums, dormitories, townhouses, and housing cooperatives.

Investing in multifamily properties is generally considered to be a practical move because they’re easy to find and are good at generating cash flow, though you would need a reliable property manager.

Land

Land that is designated for business purposes is also categorized as commercial property. It can exist in various forms, such as undeveloped land, infill land, or brownfield land (previously developed land that was used for industrial purposes but is now available for new use).

Commercial land possesses remarkable versatility as it can be transformed into any of the aforementioned types of commercial properties, depending on the developer’s intentions and plans.

In addition to the previously mentioned categories, there are other types of properties owned by commercial real estate investors that do not fit into those classifications. These properties are known as “special purpose” commercial real estate. Special-purpose commercial properties encompass a diverse range of establishments, including amusement parks, clubhouses, museums, golf courses, and theaters, among others.

Industrial

Commercial properties encompass a wide range of real estate assets dedicated to commercial activities, including manufacturing, warehousing, assembly, and various industrial processes. These commercial properties serve as the hub for businesses, requiring ample space to accommodate machinery, equipment, and energy-intensive operations. Given the limited availability of space within densely populated urban areas, commercial properties are typically situated outside of highly urbanized regions.

However, they strategically position themselves in proximity to major roads and highways, ensuring convenient access for transportation and logistical purposes. This strategic location enables businesses to efficiently transport goods and materials to and from their commercial facilities while maintaining a reasonable proximity to urban centers for operational convenience.

Office

Commercial properties encompass a broad spectrum of real estate assets primarily utilized for commercial activities such as retail, office spaces, hotels, restaurants, and various other business operations. These properties serve as the foundation for a wide array of enterprises, requiring adequate space to facilitate their day-to-day activities. Given the limited availability of prime real estate within densely urbanized areas, commercial properties are often strategically positioned in proximity to main roads and highways, yet slightly removed from bustling metropolitan centers.

The rationale behind locating commercial properties slightly away from urban hubs lies in the scarcity of space within highly populated areas. By situating themselves on the outskirts of urban zones, these properties can secure the necessary room to accommodate the diverse needs of different businesses. This spatial advantage enables commercial property owners to offer larger premises suitable for retail stores, office complexes, or warehouses, thereby meeting the demands of their tenants.

Strategic Placements of Commercial Properties

Moreover, the strategic placement of commercial properties near main roads and highways is essential to ensure convenient access for both employees and customers. This accessibility factor is vital for businesses that rely on a steady flow of goods, services, and foot traffic. 

Furthermore, the proximity to main roads and highways enhances the visibility of commercial properties, making them more visible and accessible to potential customers. This advantageous location boosts the exposure of businesses operating within these properties, attracting a larger customer base and increasing the likelihood of commercial success.

Commercial properties encompass a diverse range of real estate assets that serve as the backbone of various businesses. Their strategic placement outside of densely urbanized areas, yet near main roads and highways, allows them to address the need for ample space while ensuring optimal accessibility and visibility.

Explore the world of commercial properties and unlock endless opportunities. Call NAI Isaac today! Discover retail spaces, multifamily properties, commercial land, and special- purpose properties. Find your perfect investment today!

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