Commercial real estate should generate money. These properties can be used in the manufacture and sale of goods and services. The commercial property owner can make money in two ways. One way the owner gets money is by renting out the property to a tenant. The second way is the capital gains they can make from selling the property after it has been upgraded.
Some property owners may also do business in their properties, but most of them prefer to rent the property to tenants and earn from the rent. The tenants also receive income from doing business in these properties. Therefore, the property is beneficial to both the owner and the tenant. There are several types of commercial property that are covered in detail in this article.
1. Industrial properties
Commercial properties are located in suburban industrial parks with good infrastructure and good water systems. There are several types of such properties. Flex industrial real estate has both offices and industries, while bulk storage facilities are used as distribution centers. Light assembly industrial parks are used for assembly, while heavy manufacturing is used for the production of goods and services.
2. Retail properties
Retail properties are used as shops, restaurants, and other customer service businesses such as pharmacies. Four types of such properties are neighborhood communities, energy centers, shopping malls, and strip centers.
The office is a type of commercial property. Depending on where they are located, offices can be urban or suburban offices, and they can also be single or multi-tenants. There are different classes of A, B, and C offices. Class A office buildings have excellent finishes and amenities, and are mostly staffed by professional tenants.
Class B office buildings also have good finishes and amenities, but are not as good as Class A and are rented by different types of tenants. Class C buildings, on the other hand, have a rent that is below market value. If you're looking for an office in DC, The Exactly Group can help you learn more about commercial real estate in DC. This will help you make an informed decision when choosing a rental property.
4. Multi-family units
These properties are used for residential purposes, with the exception of properties for single family purposes. Different types of apartment buildings include high and medium-sized buildings, walk-in buildings, and garden-style properties.
These buildings are used for accommodation and other services such as conferences. The different types of hotel properties include resorts, casinos, extended stay hotels, boutiques, and full and limited service hotels. Some hotel buildings also have office space.
6. Mixed-use buildings
These commercial properties are used for more than one commercial use. For example, a building with offices and residential units.
7. Properties for special purposes
Special units are built for a specific purpose such as schools, theaters, golf courses, self-storage units and park structures.
In summary, commercial properties are used to generate money for owners when they rent the property to tenants or when they sell the property after it has been upgraded. The tenants also make money doing business in these properties. The different types of commercial real estate include offices, hotels, retail stores, commercial real estate, special purpose real estate, and mixed-use real estate.