Commercial real estate refers to the property which is used only for business purposes. This particular of real estate includes office buildings, medical centers, industrial property, shopping centers, retail stores, land for farming, multifamily buildings for housing, garages and warehouses. There are some states where a residential property is sometimes considered as a commercial one, if it contains more than a specific number of units which qualifies to be commercial in nature.
The commercial property is generally divided into six basic categories. They are discussed as follows:
- Office buildings: Office buildings include properties with single tenant, small professional buildings for office, downtown skyscrapers and everything else which comes in between these.
- Retail or restaurant: The retail or restaurant category of commercial real estate include pad sites on highway frontages along with single tenant rental buildings, small shopping center in the neighborhood, large shopping centers with grocery stores, power centers with anchor stores.
- Multifamily: Multifamily is the commercial property category that consists of apartment complexes or even high-rise apartment buildings. In general, a four-plexus is considered to be a commercial one.
- Land: This commercial property category includes investment properties on raw, undeveloped and rural land, which consists of the prospective of future development.
- Industrial: The industrial category of commercial property consists of from smaller properties to large office service or even office warehouses. The very important characteristic of industrial space is Clear Height. Clear Height is nothing but the actual height to the bottom of the girders made of steel in the internal part of the building.
- Miscellaneous: The striking feature of this category is that it includes any other non residential properties. It can be a hotel, a hospitality center, medical store, self storage developments and others.