Commercial Real Estate (CRE) refers to a property used solely for business-related purposes. It includes various types of properties that investors, developers and business owners use to generate profits. Understanding the different types of commercial properties are essential when making informed business decisions. The six types of commercial real estate properties include office, retail, industrial, logistics, agricultural and land:
Office Space
Office properties are the most known form of commercial real estate. These spaces are designed for businesses to conduct their everyday business operations. They are classified mainly under 3 categories:
- Class A: These are high-end buildings that have state-of-the-art amenities and are in prime areas, such as the bustling downtowns of cities.
- Class B: These are good-quality buildings that may be a little old but are still well-maintained.
- Class C: These are old buildings that need some renovation and are usually located in unpopular or remote areas.
Retail
Retail properties are spaces where businesses sell their goods and services directly to consumers. These spaces include small shops, restaurants and large shopping malls. As this sector is highly influenced by consumer behavior and economic trends, the rise of e-commerce platforms has led to innovations like experiential retail concepts. Types of retail properties include:
- Strip Malls: These malls have small collections of stores that have shared parking.
- Shopping Centers: These spaces have large shops and include big-name retailers which help attract customers.
- Standalone Stores: These are individual buildings that have just a single retailer. Examples include fast-food restaurants and car dealerships.
Industrial
Industrial properties are spaces used for the production, storage and distribution of goods. They are usually located in industrial areas and near major transportation hubs. The industrial sector has seen major growth due to the rise in the popularity of e-commerce platforms, this has in turn increased the demand for distribution and logistics centers. Types of industrial properties include:
- Manufacturing Plants: These are facilities in which companies produce and assemble goods.
- Warehouses: These buildings are used for the storage of goods before they get distributed further ahead.
- Flex Space: These buildings are a combination of office and industrial spaces and are used for different business needs.
Logistics
Logistics properties are similar to industrial properties, but they are specifically used for the storage and movement of goods. These spaces include fulfillment centers, distribution centers and transportation hubs. The growth of online shopping has led to an increase in demand for such properties, as they provide an efficient way to store and distribute products to consumers quickly. Some of the key features of logistics properties are:
- Proximity to Major Highways: These properties are located near major highways, which makes access to transportation routes easier.
- Large Storage Areas: They are designed to provide large storage space and can easily accommodate high volumes of goods.
- Advanced Technology: These spaces are equipped with automated systems that make the management of inventory and shipment easier.
Agricultural
Agricultural real estate includes land and buildings that can be used for ranching, farming and other types of food production. These properties are unique as they don’t just help generate income but also contribute to the food supply chain. They can range from small family farms to large commercial operations. Types of agricultural properties include:
- Cropland: This includes land that is used for growing crops like wheat, corn, soybeans, etc.
- Ranches: These are large areas of land that are used for raising livestock like sheep and cattle.
- Orchards and Vineyards: These are specialized farms used for growing fruits or grapes for wine production.
Land
Land can be a versatile investment and can offer opportunities for residential, commercial, or industrial development. Its value can grow exponentially depending on the location, zoning regulations and potential for development. Many investors buy undeveloped and partially developed land as commercial real estate investments with the intention of future development or sale. Types of land investments are:
- Greenfield Land: These are undeveloped lands located on the outskirts of the city that have potential for future development.
- Brownfield Land: These are lands that have been previously developed but may require environmental cleanup before new construction can be done on them.
- Infill Land: These are vacant/underused lands within an urban area that can be redeveloped and turned into valuable property.
Find your perfect commercial real estate in Naples, FL with Barron Collier Commercial. Our team will help you find the ideal property to elevate your business.
