[fa icon="calendar"] 03.07.2019 / by Demetree Real Estate Services
When people think about various types of commercial real estate properties, they usually think of shopping centers, buildings or warehouses. However, the commercial real estate industry is much more specific when it comes to defining property types.
Here are the 5 common types of commercial real estate properties.
1. Office Buildings
Office spaces can be single, multi-tenanted or build-to-suit lease. Usually, they are classified as urban and suburban properties. Urban office buildings (high rise properties) are found in the downtown area and suburban office buildings (mid rise structures) are located outside the city. Typically, traditional office space is classified as A, B or C.
Class A buildings are considered to be the most prestigious buildings in the commercial real estate market. Class A buildings are also in prime locations and have the most modern amenities.
Class B offices are nice, but these are generally a little older, but still have good quality management.
Class C is the lowest classification of office spaces and buildings. These are older buildings located in less desirable areas and often need extensive renovation and repairs of general construction services.
2. Industrial Properties
Manufacturing facilities, warehouses, distribution centers and research and development spaces are considered industrial properties. Manufacturing and development properties that are build-to-suit buildings are difficult to reoccupy without extensive changes, while warehouses and distribution centers can be more generic buildings. Industrial properties are usually located along major transportation routes outside of urban areas.
3. Retail Centers
Retail centers are spaces available for lease intended for grocery stores, shopping centers, restaurants, strip malls (contains a mix of small retail stores) and regional outlet malls. Retail spaces can also be single or multi-tenanted or stand-alone buildings.
4. Multifamily Complex
Multifamily includes anything larger than a building that consists of four separate apartments. This includes apartment complexes, downtown high-rise apartment buildings and condos. Similar to office properties, multifamily properties are often classified from A to D.
Class A - These are luxury apartments with top amenities including swimming pools, saunas, gym and cafes. They are located in a very desirable area and are usually 10 years old or less.
Class B - These properties are usually 10 to 25 years old. The rental fee is a bit lower than Class A but they are generally well maintained.
Class C - These are commonly more than 20 years old, located in places that aren’t considered very desirable. They probably require renovations and repairs by construction services, and are at a lower rental rate than Class A or Class B.
Class D - It is usually more than 30 years old and may be significantly worn due to high turnover. It is often located in less desirable areas.
5. Commercial Land
This category includes raw or undeveloped land, or any plot or a subdivided area of land which is intended for business purposes. This could include warehouses, parking lots, and other profit generating enterprises. The value of commercial land varies depending on its location and the existing businesses therein or adjacent to it.
The above commercial real estate categories cover the most important types of commercial real estate properties. However, investors build and own many other types of commercial real estate for special and specific purposes. This could include self-storage, car washing, theme parks, bowling alleys, marinas, theaters, medical office space (e.g. nursing homes and hospitals), funeral homes, churches and community centers.
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When it comes to real estate in Orlando and Central Florida, Demetree has a rich tradition in the Central Florida community dating back to the 1940s. The Demetree family has been a pillar and major contributor to what Orlando and Central Florida are today.
For decades, Demetree Real Estate has been specializing in providing property management, leasing, development, consulting and construction management services to property owners throughout Florida. As Central Florida’s oldest, locally owned, full-service commercial real estate management firm, we believe that business is built on relationships. That’s why honesty and integrity are at the heart of everything we do.
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