What is Commercial Property? Commercial properties are necessary for any society, area, and city. These are available everywhere in the city. New projects, housing schemes, or society are not completed without commercial areas. Normally a question comes to our mind: what to do with commercial property? These can be used for a business activity or to generate income Commercial real estate is leased to tenants for them to generate income activities. 

There is a wide range of commercial properties including from a single shop to a giant shopping center. Office space, industrial units, multi-family rentals, and retail shops are included in commercial properties, and except for these, Hotels, Resorts, Restaurants, Medical centers, and gyms or health care facilities are also included in commercial properties. As an investor you want to invest in commercial property or purchase a commercial unit for your business, you will need particular finance, but it must be clear in your mind there is a big difference in prices between residential property and commercial property.

Types of Commercial Properties 

As per the above details, we know that Commercial property includes a wide spectrum of properties, ranging from industrial spaces to hotels and vacant land, now we discuss the types of commercial properties as per the following key points.

1 – Building for Offices Use 

Office can be available in many sizes such as a single tenant to large high-rise buildings. These buildings are abundant in urban and suburban neighborhoods. As we see in our routine various types of office spaces include medical offices, commercially zoned homes, and central business district buildings. Office buildings are also separated into three tiers: Class A, Class B, and Class C. 

• Class A office buildings:

Office building class A, are newer in age and at the top of competitors. Rent is above average considering these properties have a state-of-the-art, high-quality presence. Large, top-tier companies usually house these buildings. 

• Class B office buildings:

Office building class B,  rent about average and supply adequate space to their tenants. These are very common spaces and give off the standard “you get what you pay for” idea. 

• Class C office buildings:

Office building class C normally are of the lowest quality, renting below average, and often compete for tenants rather than the contrary. 

2 – Multi-Family Houses

When more than one unit is included in multi-family houses, it becomes commercial property. These properties can be a great place for Real Estate Investors With rental prices increasing and high demand for units, these types of investments are very famous nowadays. Here are mentioned types of multi-family housing: 

• High-Rise Apartments 
• Duplex, Triplex, or Quadplex
• Garden-Style Apartments
• Mid-Rise Apartments 
• Student Housing 

3 – Industrial Property 

Industrial properties have variety, depending on business type and purpose, normally it has large sizes. heavily vary in size and purpose. It can be used for storing things or can be a place of work or production for a business. Demand for industrial property depends on location, if you invest in industrial property, it can be a good decision regarding investment. Here are some types of industrial properties

• Storage Units 
• Cold Storage
• Bulk Warehouse
• Showrooms
• Research Facilities Unit
• Heavy Manufacturing
• Pharmaceutical
• Production Unit 
• Textile industry
• Garment Factory
• Mobile/Vehicle Industry 

4 – Hospitality 

These types of properties are typically used to serve travelers as temporary, short-term residences. Hospitality offers accommodation, entertainment, and meals to its guests. Types of hospitality properties are mentioned here:

• Hotels 
• Limited-Service Hotels 
• Short Term Rentals 
• Full-Service Hotels 
• Resort 

5 – Commercial Space Usage

These types of properties include restaurants and retailers. Commercial space can have multiple tenants or a single tenant in a standalone building. Types of Commercial space can include: 

• Malls 
• Shopping Center 
• Retail Center 
• Power Center 

6 – Special Purpose use Commercial Properties 

Some Commercial buildings use for special purpose, These structures include: 

• Amusement parks 
• Theme Parks
• Schools and Colleges 
• Theaters and Cinemas  

7 – Mixed Commercial Properties Usage 

Mixed-use is a commercial property like numerous downtown high-rises that incorporate this concept. Featuring retail outlets on their lower levels and residential units. Real Estate Asset Classes are included in Mixed-use properties. 

8 – Agricultural Land 

When we invest in land property, we must first keep in mind that it is a risky process. Still, it is also a fact that the profit margin in land investment is higher than in any other investment. If you invest in Agricultural Land, it can prove to be a very profitable business for you in the future. This type of land can be cultivated and farmhouses can be built.

Can You Rent Out Commercial Property As Residential?

As we see around us, there is no allow to rent out commercial property as residential, as zoning laws typically differentiate between commercial and residential use, but it can be possible after specific approval, as some areas may permit mixed-use developments where a property can serve both residential and commercial purposes. To legally convert a commercial space for residential use, you would likely need to apply for zoning changes or special permits, and the property must meet residential building codes and safety standards. Always consult local regulations before making such changes.

Final Words…..

Investment in Commercial Property can be lucrative due to higher rental income and appreciation potential, but if the market trend changes and prices fluctuate, then you have to keep these changes in mind. So, whenever you invest in commercial property, keep in mind the location of the commercial property you are taking up, the prices, and an idea of whether it is low or high according to the market, and what is the current market trend.