Back HomeTypes Of Commercial Real Estate Every Buyer Should Know
When it comes to commercial real estate, College Station, TX offers a wide range of options for buyers and investors in need of a suitable property. Here are some of the most common commercial property types to invest in.
OFFICE BUILDINGS
Office buildings are available in different sizes, including low-rise, mid-rise, and high-rise depending on building height and the number of floors. If a building exceeds 40 floors and meets a certain height level, it may be classified as a skyscraper. Office buildings fall under three board categories based on a building’s construction, location, and the surrounding market:
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Class A are considered the most desirable office buildings in terms of construction, architecture, finishes, location, and market presence. These buildings often feature first-rate amenities, advanced technology, LEED certification, and professional management.
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Class B office buildings feature quality construction but are often located in less desirable areas and markets. However, these buildings are still well-maintained and properly managed.
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Class C includes office buildings that are less well-maintained and are located in undesirable or out-of-the-way areas. In general, these buildings tend to be older with dated finishes and technology. Some may require extensive renovations.
Central Business District (CBD) and Suburban Office Buildings
CBDs are often located in desirable and highly commercialized areas in major cities. Office buildings in such areas typically include high rises. Suburban office space, on the other hand, includes mid-rise buildings located outside of the city center. It is also common for some cities to have suburban office parks, which typically feature several mid-rise buildings in a campus setting.
RETAIL SPACE
This commercial property type refers to a physical space designed for retail activity. This is where businesses provide products or services to consumers. Some of the most common retail spaces include boutiques, supermarkets, department stores, and malls.
While retail space can vary in terms of size and layout, it typically features displays, product shelves, fitting rooms, and checkout counters to create a positive shopping experience and encourage the purchase of goods or services.
HOTELS
Hotels are a type of commercial property that offers short-term and long-term accommodations. In addition, these establishments provide access to amenities and services for a more convenient and enjoyable stay.
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Full-service hotels are often located in CBDs, downtown areas, or within proximity to tourist attractions. These include major hospitality brands like the Marriott or Four Seasons.
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Limited service hotels typically refer to boutique hotels on smaller properties that may not have the kind of amenities and services as a full-service hotel.
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Extended stay hotels typically offer larger rooms or apartment-style accommodations with small kitchens for guests who plan on staying for a week or longer.
MULTIFAMILY PROPERTIES
Multifamily properties are a type of commercial real estate that can serve as an investment property, whether owner-occupied or not. As an asset class, multifamily properties may range from a duplex, or two-unit rental property, to a hundred-unit apartment complex. Apartment buildings can be low-rise, mid-rise, or high-rise depending on the number of stories.
MIXED-USE PROPERTIES
Mixed-use properties can be a combination of several commercial property types and may feature offices, retail space, hotel suites, and multifamily units. Many mixed-use developments have retail and restaurant space at ground level with offices or residential units on the upper floors. Most high-rise buildings in CBDs and downtown areas are considered mixed-use developments.
INDUSTRIAL
Industrial properties are available in different sizes and layouts depending on their intended use:
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Heavy manufacturing property refers to heavily customized properties with heavy machinery to cater to large manufacturers. It is considered a special use category and would require extensive renovation when repurposed for another tenant.
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Light assembly property typically includes office space, storage, and space for product assembly. This tends to be easier and simpler to reconfigure than heavy manufacturing property.
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Flex space or flex warehouses feature a combination of office and industrial space and can be easily converted or repurposed.
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Bulk warehouses are vast properties that range in size from 50,000 to over 1 million square feet. These warehouses are used for the regional product distribution with easy access for trucks or similar vehicles.
LAND
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Commercial land is zoned for commercial or business use. It is usually intended for the construction and operation of commercial buildings and facilities.
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Greenfield or agricultural land typically refers to undeveloped land for farm use or pasture. There are different types of agricultural land, such as ranches, orchards, and animal farms.
SPECIAL PURPOSE
Also called miscellaneous properties, special purpose commercial real estate usually includes stadiums, arenas, theaters, bowling alleys, amusement parks, zoos, and parking lots.
Locate your next investment in College Station with Berkshire Hathaway HomeServices Caliber Realty. As a trusted brokerage firm, they offer market insight and professional guidance. Get in touch with the team at 979.694.8844 or send a message.
