The study of real estate market is quite taxing yet interesting. This is because constant flux in land price along with emerging trends keeps you on your toes while undying research help in discovering new grounds.
Statistical results extracted from archives of realty market shows unusual graphical patterns ascertaining the change. Only way you can learn and unravel the mystery is by understanding the work system of property market and we’ll begin with commercial properties.
Commercial property can be classified into several categories. When asking people about different commercial real estate types; a common answer is shopping malls, warehouses and office buildings. However, there’s much more to the industry when defining precisely so we’ll touch a few commercial properties in detail.
The office strip
Official/business buildings are further grouped into three categories namely Class A, B and C. “Class A” buildings are best in terms of location and construction, “Class B” properties have less desirable location but outstanding construction while “Class C” has many different aspects.
- Central Business District (CBD)
Central business district is located in the heart of a city where you’ll find most of official buildings. Large and rapidly developing cities like New York, Chicago or Dubai boasts amazing skyscrapers in downtown areas housing many different offices.
- Suburban offices
Midsize office space structure generally covers 80,000 to 400,000 square feet. These are located on the outskirts with suburban official parks in between. Buildings are aligned strategically with a campus-like setting where most have high to mid-size structures.
The industrial strip
Large manufacturing industries fall under the category amassing heavy machinery and industrial machines for end-users. Remember that timely renovation and upgrading is a must for such properties especially if leased.
- Light process/Assembly
These structures are simpler when compared with heavy manufacturing and easily reconfigured if need arise. Common examples include product assembly, office space, storage and data centres on a broad spectrum.
The Retail Strip
- Strip centres
These are smaller commercial properties that may or may not have anchor/fixed tenants. Anchor tenant refers to larger retail occupant who draws customers towards this particular property. Fine examples are Home Depot, Publix and Wal-Mart that further contains a mix of small retail outlets like dry cleaners, a Chinese restaurant and beauty salon so on.
- Community retail outlets & regional malls
These usually encompass 150,000 to 350,000 square feet space with multiple anchors like grocery and drug stores. You can easily find one or more restaurants within community retail centre.
Regional malls are somewhere between 400,000 and 2,000,000 square feet having a glut of anchor tenants like departmental stores or big retailers such as Barnes & Noble.
- Mid & high-rise apartments
Midrise properties are no more than five to nine stories having 30 to 110 units overall plus elevator service. One may find them easily in urban locations.
Meanwhile, high-rise apartments are found in broad markets bearing above 100 units, each managed professionally. For example a large residential project amidst commercial properties that boasts towering apartments.
- Garden apartments
These evolved during the 1960s and 70s attracting younger dwellers from urban areas. Garden apartments typically cover 50 to 400 units and no more than three to four stories taller. Amenities are a little less such as no elevators and surface parking.
- Full & limited service hotels
Full service hotels are located in the heart of business strips or trafficked tourist spots. Top names include Marriot or Ritz Carlton for example.
Limited service category generally includes boutique properties with smaller hotels and lack amenities such as convention space, on-site restaurant and room service so on.
- Elongated stay hotel
Here you’ll find larger rooms, smaller kitchens and suits people staying for a week or more.
These are a few types of commercial properties everyone must be familiar with, especially those seeking a career in real estate industry.