Commercial property refers to the real estate property which usually belongs to buildings and lands that are used for business activities that can earn rental income or capital gains and generate profits.
Commercial real estate property includes office spaces, business spaces, retail shops, industrials, multifamily and many more…
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- Office Spaces
Office spaces are categorized into main 2 divisions – URBAN & SUBURBAN.
Urban office buildings are found in major cities and include high rise properties and skyscrapers.
Suburban office buildings can even be grouped in office parks and that include midrise stature located outside of a city center.
Office buildings can be single-tenanted or multi-tenanted, and many are build-to-suit.
The Building Owners and Managers Association International (BOMA) explains: Three tiers according to ranks can be classified into: Class A, Class B, and Class C.
- Class A:
• Class A offices are the most superior and prestigious space and amenities.
• They offer high-quality finishes, definite market presence, and excellent accessibility
• For example:- BHUTANI CYBERTHUM in Noida is a type of Class A.
- Class B:
• Class B offices are a great alternative for the
prospectivewho requires a quality building but unable to afford or is unwilling to pay high rents.
• They are deemed to have fair finishes, adequate systems, but with a less desirable location.
- Class C:
• Class C type of office spaces belongs to the buildings that have rent below average for the area and tenants hunting for functional space. 2. Retail
• Retail can be multi-tenanted (often with an anchor, or lead tenant, that serves to drive traffic to the property, single-use or standalone buildings.
• They include the properties that house restaurants and retailers.
• The retail sector is complex because the type of shopping centers is specified by the size, trade area, concept, and types and number of tenants. Like retail shops are of different sizes,
concept ,trading product and many more…
- 3. Industrial
• These buildings house industrial operations for a variety of tenants and are usually located along major transportation routes outside of urban areas, especially along major transportation routes.
• The low-rise buildings can also be grouped into industrial parks.
- Heavy manufacturing:
• Heavily customized buildings with machinery required by manufacturers to operate and produce goods and services
- Light assembly:
• These aren’t as customized, can be reconfigured and may be used for product assembly storage, and office space.
- Bulk warehouse:
• Large and are used as distribution centers.
- Flex industrial:
• They are a mix of both industrial and office space.
-Research and development (R&D):
Theyfacilities the specializedtype of industrial.
- 4. Multifamily
The multifamily type of commercial real estate sector covers all types of residential real estate outside of single-family, including apartments, condos, co-ops, and townhomes.
They are further classified into six different buckets:
- High-rise: At least one elevator and a building with nine or more floors.
- Mid-rise: A multistory building with an elevator.
- Garden-style: 1, 2 or 3 floors apartment built in a garden-like setting in a suburban, rural, or urban location; buildings may or may not have elevators
- Walk-up: A 4 to 6 levels building without an elevator.
- Manufactured housing community: A community in which the operator leases ground sites to owners of manufactured homes.
- Special-purpose housing: It targets a particular population segment, including student housing, seniors housing, low income or special need housing.
- 5. Hotel
The hotel sector is a type of commercial real estate that covers accommodations, meals, and other services for travelers and tourists. The hotels may be independent (boutique) or flagged.
• Smaller in size and don’t provide amenities such as room service, on-site restaurants, or convention space.
• Includes room service and has an on-site restaurant.
• They are located in central business districts or tourist areas.
Boutique: They have full- service amenities and a few rooms that are in an urban or resort location.
• Larger in room size, small kitchens, and are designed for people staying a week or more
• They have a large amount of land that provides full-service and has an attached golf course, water park, or amusement facility.