Types of Commercial Real Estate Properties
Typically, commercial real estate property is categorized into four types: apartments/multi-family, office, retail and industrial. However, each type of property can be broken down into subcategories, such as education, healthcare, food service and sales, religious worship, warehouse and storage etc.
Here I will share some common commercial real estate types and their subcategories:
1. Apartment/Multi-Family
Residential buildings in excess of 4 units are referred to as multi-family properties. Commercial multi-family buildings are similar to a residential condominium except that all of the units are owned by a single owner and rented out to multiple tenants. In America people usually call this type of building an apartment.
Garden Apartments: These buildings are located in suburban areas, and many were built during 1960s to 1970s. They are generally 3-4 stories with 50-400 units. Some have elevators and some don’t. Most garden apartments have surface parking, although some have covered parking garages.
Mid-rise Apartments: Most of these properties are located in urban areas on smaller parcels of land and are generally 5-9 stories with 30-200 units. These apartment buildings have elevators and some may have a few basic amenities, like exercise facilities and a swimming pool.