Generally, properties with less than 4 living units and less than 10 acres of land are considered residential real estate properties. Commercial real estate properties include office, industrial, rental, and retail uses as well as churches, government buildings, and parcels of land more than 10 acres. Some commercial real estate properties are for generating profits; some are not. For example, while rental properties are for generating profits, properties owned by churches, non-profit hospitals and schools and government agencies are considered non-profit uses. Therefore, the appraisal methods used for profit generating properties and those used for non-profit properties are different. For rental properties, the primary consideration for owners is maximizing their profits and reducing their costs while maintaining substantial amenities and doing updates to meet customer needs and consumer requirements. For non-profit properties, the focus is on keeping costs of ownership and operation low and maintaining a consistent budget. Because of the information age, there have been significant changes in the requirements for both residential and commercial properties. This leads us to the question of what the future trends in commercial real estate properties will be.
Multifamily properties are considered commercial real estate. Right now, multifamily properties are very popular for baby boomer retirees and younger generations. Some builders are building 55+ communities to meet the needs of baby boomer retirees. These communities are close to hospitals, pharmacies, and parks. Some of these properties provide full time nurses and pharmacies; many of them provide exercise facilities, recreational programs, and social and community service clubs and programs. These communities come in various ownership and management structures, such as cooperatives, condominiums, and apartments. The younger generations prefer rental apartments with upgraded amenities such as swimming pools, high speed internet service, exercise facilities and clubhouse facilities which can be used to host parties or meetings. Another priority for younger tenants is being close to parks, restaurants, shopping centers and colleges. Right now, most multifamily investors are focusing on either buildings targeting senior living or those targeting younger generations; they ar