Commercial real estate is a diverse industry with many different types of properties. What are the different types of commercial real estate? This two-part blog series will explore the world of commercial properties.

In part 1, we’ll dive into the various categories of properties in commercial real estate. Let’s get started!

4 Types of Commercial Real Estate

1. Office Buildings

With offices, you have one of the most common types of commercial real estate. The industry classifies office buildings into three tiers—Class A, Class B, and Class C.

• Class A: Class A is the pinnacle of quality and prestige. These office buildings are in prime locations and offer the best amenities. They also have attractive designs and are in good condition.
• Class B: These office buildings offer a solid balance between quality and affordability. While they may not possess the premium features of Class A buildings, they still provide functional and well-maintained spaces.
• Class C: Class C are typically older structures with fewer amenities and may require some renovation or updates. They often attract tenants looking to pay less for office space. Investors may also buy these properties to make upgrades and increase value.

2. Retail Space

Retail spaces are for the sale of goods and services. You can find different types of retail space to meet the needs of different businesses. Common subtypes include:

• Shopping Centers: These retail complexes house multiple stores, ranging from small boutiques to large department stores. They often include amenities like food courts and entertainment facilities.
• Strip Malls: Comprising a row of interconnected stores, you’ll usually find strip malls on busy roads. They offer convenience and accessibility to both shoppers and retailers.
• Standalone Storefronts: A standalone storefront is a retail building for a single business. They often cater to niche markets or boutique businesses.

3. Industrial Buildings

Industrial buildings facilitate the production, storage, and distribution of goods. They are essential for the functioning of various industries. Subtypes in this category include:

• Warehouses: Warehouses provide storage space for goods and materials. They range from small facilities a business might use for storage to large logistics hubs that serve a wide area.
• Manufacturing Plants: These properties have specialized machinery and production lines for manufacturing goods. In most cases, the building caters to a specific industry.
• Flex Spaces: This property type mixes workspaces, storage areas, offices, and more. It is often for a business that needs a mix of different types of space.

4. Multifamily Properties

Multifamily properties are residential buildings with multiple units. However, there are different types of multifamily properties.

• High-rise: This property type features nine or more floors equipped with at least one elevator. They are common in major cities.
• Mid-rise: These are multistory buildings with elevators, typically in urban areas. Mid-rise multifamily properties offer a balance between convenience and vertical living.
• Garden-style: These apartment developments usually have buildings with one to three stories in garden-like settings.
• Walk-up: This property type is usually four to six stories, and the buildings have no elevator. Walk-up multifamily properties are often in urban or dense residential areas.
• Manufactured Housing Communities: These communities lease ground sites to owners of manufactured homes. They provide affordable and flexible housing options for residents.
• Special-purpose Housing: Multifamily properties that target specific population segments. For example, it might be housing for college students or seniors.

Ready to dive into the world of investing?

Each type of commercial real estate offers unique opportunities and challenges. Stay tuned for part 2, where you’ll learn more about the types of commercial real estate.

Do you need help with commercial real estate investments in Columbus, Georgia? Click here to contact the Cummings Commercial Team. We are CRE experts ready to help buyers and sellers navigate the local market.

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