Commercial Real Estate Property Types
There are different types of commercial real estate, ranging from multi-family homes to skyscrapers. Anything that is not a single-family home falls under commercial real estate in Oklahoma. Here are a few examples.
Multi-family properties are an excellent way to shift from residential to commercial real estate.
Any residential property that is not residential is a multi-family property. This list includes:
- Duplex – This also includes Triplex and Quadruplex units. Two, three, or four-unit residences are the perfect segue to commercial real estate and are easier to manage than apartment buildings.
- Low Rise – Also called Garden Apartments, these are typically no more than four stories with fifty to a few hundred units. There are no elevators in these structures.
- Mid Rise – The next step in these types of commercial property is five to 12 stories and includes an elevator. Mid-rise appointments contain 30 to 110 units.
- High Rise – A high rise apartment complex has over 100 units. With 10 to 40 stories, a high rise requires professional management. Anything over 40 stories is a skyscraper.
Industrial properties have particular uses and come in different sizes. Here they are:
- Heavy Manufacturing – The bulk of manufacturing properties these are structures used for heavy machinery. They are typically difficult to repurpose for any other use.
- Light Assembly – These properties do not require the same level of machinery. Light assembly is for a company that needs assembly, office space, and storage.
- Flex – This type of property is a warehouse that can be industrial and office space.
- Bulk – This warehouse is 50,000-1,000,000 square feet and is used for regional distribution.
There are many types of commercial properties under the retail umbrella.
- Strip Center – Shopping centers are smaller retail properties for multiple businesses. They are usually a mixture of local businesses and anchor stores.
- Community – Retail centers are made up of more than one anchor and are 150,000 square feet or larger.
- Power Center – This combination of big-box and inline retail stores has multiple parcels.
- Mall – With a minimum of 400,000 square feet, a mall has various retailers with a few anchor stores.
Office buildings are similar to multi-family properties in size. Each one has a specific classification based on the location and health of the surrounding market. Class A has the best location, market, and condition. Class B buildings are in good condition, but they lack the location. Class C buildings are in poor condition and location.
- CBD – The Central Business District is typically located downtown or city centers, particularly in large metropolitan areas. This is where you will find skyscrapers.
- Suburbs – Suburban office buildings are generally mid-size and outside the heart of the city.
Hotels may be full-service, extended stay, or limited service. Full-service are large, centralized hotels that offer amenities such as laundry and room service. Limited-service hotels are smaller, boutique establishments that do not have all the amenities of full service. Extended stay hotels have large rooms and kitchens where visitors can stay for weeks at a time.
A mixed-use property is anything that combines one or more types of commercial properties.
For example, loft apartments are often about retail space.
Land may be greenfield, infill, or brownfield.
- Greenfield – Any undeveloped pastures, farmland, or agricultural properties are greenfields.
- Infield – This land is in developed areas, but it has been vacated.
- Brownfield – These properties are often environmentally damaged after spending time as industrial properties, but they are being reused.
Anything that does not fall under the commercial real estate property types above is special use.
Examples include zoos, theaters, parking lots, etc.